Ekonomania

Inditex Global Retailer of Fashion

2017 financial performance

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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

*No advertising

*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
Zara 60 49 2127 2051
Zara Kids -7 -13 139 147
Pull&Bear 13 41 986 977
Massimo Dutti 16 23 781 763
Bershka 21 29 1102 1073
Stradivarius 30 35 1024 985
Oysho 36 21 672 628
Zara Home 35 41 587 543
Uterqüe 8 1 86 73
Total 212 227 7504 7240

 

Sales trend

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%
Spain 16%
Amerikas 16%
Total 100%

Financial performance

Inditex Group has been regularly growing annual performance in last 3 years

Billion €uro 2016 2015 2014
Net sales 23,3 20,9 18,1
EBITDA(Earnings Before Interest, Taxes, Depreciation and Amortization) 5,1 4,7 4,1
EBITDA margin 21,9% 22,5% 22,7%
ROE (return on Equity) 26% 26% 25%
Sales profit margin 14% 14% 14%

2017 performance
2017- 9 montly Sales Performance (1 February-31 October 2017)
€uro Billion 9 month 2017 9 month 2016 Changes
Net sales 17,963 16,403 10%
Gross profit 10,319 9,492 9%
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.