Inditex Global Retailer of Fashion
2017 financial performance
Inditex is one of the biggest of Global Fashion Retailer. In 2017 Group has steady increased sales.Before sales information, Let’s have a look some information of group below;
*7504 stores in 94 countries(2017 Aug)
*Sales €23,3 billion(2016)
*Cash Flow €4,4 billion (2016)
*Market Capitalization €101 billion
162,450 employees ,700 designers and 64500 style in 2016
8 independent concepts
Stores in 5 continents,94 countries
Inditex supply countries over 53 countries that 59% of the Group’s suppliers factory in Spain, Portugal, Turkey and Morocco are close to Headquarters to the country. Inditex ‘ group has 11 factory in Arteixo(Spain)
Differentiated business model
*Central inventory position.(No local distribution centers)
*Gloval fully integrated Store&Online
*Lastest fashion trends
*Prominent stores in prime locations
*Fresh items twice a week
*Distribution to all stores worldwide twice week
*Orders to store and online customers in 2-48 hours
*Lean local head offices
*Market segmentation through distinctive concepts
Operating autonomy ,central support
Inditex Group has announced interim nine months 2017 results.
*Strong operating performance: Net sales for interim 9 months 2017 reached €17,96 billion ,10% higher.Like -for-like sales growth remains strong
*In Auguts, Inditex launched 7 brands in Belarus.
*Inditex launched online sales for Zara in India.
Gross profit reached €10,3 billion, 9%higher.Gross margin reached 57,4%.
EBIT was €2,99 billion ,6% higher.
Net income reached €2,3 billion, 6% higher.
Store and online sales in local currencies increased by 13% from 1 November to 11 December 2017.
Inditex in 9 months in 2017, has opened 212 new stores in 52 continues,
|Net opening||Total Stores|
|Brands||9 month 2017||9 month 2016||31 Oct 2017||31 Oct 2016|
More than half of sales from Europe. If we look at by region;
|Stores&Online sales||2017 (first half)|
|Europe( ex Spain)||43%|
|Asia and Others||25%|
Inditex Group has been regularly growing annual performance in last 3 years
|EBITDA(Earnings Before Interest, Taxes, Depreciation and Amortization)||5,1||4,7||4,1|
|ROE (return on Equity)||26%||26%||25%|
|Sales profit margin||14%||14%||14%|
|2017- 9 montly Sales Performance (1 February-31 October 2017)|
|€uro Billion||9 month 2017||9 month 2016||Changes|
|Operating income (EBIT)||2,993||2,822||6%|
|Net income attributable to the controlling company||2,341||2,205||6%|
|Net income margin||13,0%||13,4%|
|Gross profit margin||57,4%||57,9%|
H&M is following Inditex group closely.We will follow their competition.