Saturday 23 March 2019

Online revenue jumps at Zara owner

Revenue from online sales now account for 10pc of group revenue for the Zara owner
Revenue from online sales now account for 10pc of group revenue for the Zara owner
Ellie Donnelly

Ellie Donnelly

Revenue from online sales at Zara owner Inditex increased by a massive 41pc in 2017, as the group recorded an overall increase in net sales of 9pc for 2017.

Revenue from online sales now account for 10pc of the total group revenue, according to the company's annual returns for 2017.

Overall, total revenue for the year at the group behind Zara, Massimo Dutti, Bershka, and Pull and Bear was €25bn, while group saw its earnings before interest and tax increase to €4.3bn, a 7pc increase year-on-year.

Like-for-like sales the company which was founded in 1985 in Spain, expanded by 5pc during the year, with all geographies and all brands delivering growth by this measure, the company said.

Chairman and chief executive of Inditex, Pablo Isla, described it as a year of "solid growth" for the company, and highlighted, "the unique strength of our integrated stores and online model and its significant growth potential".

Mr Isla went on to say that "the prescient investments made in technology and logistics in recent years, coupled with space optimisation, mean the company is well placed for continued growth across all its markets".

The group's store count at year-end 2017 had increased by a net 183 stores to 7,475 stores in over 90 countries worldwide.

This included the opening of 524 stores in 58 markets, offset by 341 smaller units which were replaced or absorbed by larger stores.

As part of its ongoing plan to focus on larger units in prime locations, the Zara owner enlarged 144 flagship stores and refurbished a further 122 stores.

The company, which employs over 160,000 staff said it was set to distribute €562m in variable remuneration to its employees, €42m of which would be distributed under the scope of its Extraordinary Profit-Sharing Plan.

Inditex's board of directors said it will submit a motion for the payment of a €0.75 per-share dividend, marking year-on-year growth of 10.3pc, at the Annual General Meeting scheduled for July.

An interim dividend of €0.375 per share will be paid out in May 2018, and the remaining €0.375 per share would be paid out, if approved, in November 2018 in the form of a final and special dividend, the company said.

Since the year-end, store sales in local currencies increased by 9pc between 1 February and 11 March 2018, the company said.

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