Inditex, the parent company of the popular Spanish clothing and accessories ZARA, has announced financial results for the first quarter of this fiscal ended April 30, 2018. During the period under review, marked by the significant exchange rate effects, the retailer reported a 2 per cent increase in net sales to € 5.7 billion.
Same-store sales growth remained positive in all geographies in the reporting quarter. Sales increased by 9 per cent in local currencies between 1 May and 11 June 2018.
Net profit for the retailer during the reporting quarter reached € 668 million as compared to € 654 million in the same period a year ago.
During the reporting quarter, the brand expanded its integrated store model, launched e-commerce operations in Australia and New Zealand.
The first quarter of the fiscal also witnessed the opening of stores in 36 markets. It continued with its strategy to absorb smaller-sized units and expanding and refurbishing others. Introduction of latest technologies related to the Group’s integrated store and online model were majorly carried under refurbishments and investments.
To compliment the Group’s existing logistics platforms in Spain, the retailer will open a new distribution centre in A Laracha this summer. Additionally, work is also underway to set up a new logistics hub in Lelystad (Netherlands). Investment in these new facilities exceeds €150 million.
