Inditex leaves the crisis behind and breaks sales and profit records in a second quarter
Inditex overcomes the coronavirus crisis by breaking sales and profit records in a second quarter. The end of the state of alarm in our country and the progressive lifting of restrictions in the rest of the world have boosted the results of the textile multinational until it achieved the second best quarter in its history. From May to July, the chain billed a total of 6,944 million euros, 1.5% more that in the same quarter of 2019, while profits reached 850 million euros, 55 million more than two years ago. The ebitda, of 1,855 million, also exceeds the records of two years ago.
The president of the company, Pablo Isla, emphasizes that the results are “the result of the commitment of all the people who make up the company to offer the highest creative quality in fashion. Thanks to all of them, we are making the most of the benefits of sustainable strategic transformation in our business model ”.
So far this year, the company's results are still below pre-pandemic figures, as the first quarter was still affected by restrictions. Thus, the first semester of the owner of brands such as Zara, Pull & Bear and Massimo Dutti ended with sales of up to 11,936 million euros, 49% more than a year ago, but 7% below 2019. For its part, the profit achieved in the first six months of its fiscal year reached 1,272 million euros, almost 300 million less than two years ago. years. EBITDA, compared to 2020, grew by 109%, to 3,101 million euros.
In the sales section, the multinational highlights that both those made in stores, almost 100% operational, and in the online channel continue to grow. In fact, constant rate sales in the online channel grew 36% compared to the first half of 2020 and 137% compared to the same period in 2019. The chain expects that internet billing come to represent 25% of the total in this exercise.
By brands, Zara (which includes Zara Home) brought together most of the sales in the first half, billing 8,488 million of the 11,936 in total. The second division that sold the most was Bershka, with 919 million. They are followed by Pull & Bear (786); Stradivarius (782); Massimo Dutti (607) Oysho (305); and closes Uterqüe, with 48 million euros.
In anticipation of the second half of the year, Inditex explains that in-store and online sales at constant exchange rates between August 1 and September 9, 2021 have risen 22% compared to the same period in 2020 and a 9% compared to the same period of 2019. In addition, it anticipates that next September 30 Zara will launch 'Zara Athleticz', a sports collection for men.
Uterqüe will join Massimo Dutti
Another novelty announced, but which will not come true until 2022, is that the brand Uterqüe will be integrated into Massimo Dutti. Thus, all the products of the former can only be purchased on the Massimo Dutti website or in some selected stores, while the Uterqüe stores will close.
Inditex explains that this decision "seeks to take full advantage of the penetration and projection that Massimo Dutti has had in international markets such as the United States, Canada, Mexico or Turkey for years." It is an operation that also ran with Zara and Zara Home, which, according to the textile group, is having "very good results", since "the synergies between brands are being used to the maximum."
As explained above, the 82 Uterqüe stores that exist at the end of the first semester will be closed, thus continuing with the commercial strategy of closing establishments by Inditex in order to take better advantage of the commercial space. In the global calculation, the textile group closed a total of 94 stores in the second quarter, while compared to last year there were 683 fewer stores.