July 8, 2020

Zara increases its sales by 7.2% in the first half


EP

MadridUpdated:

Zara sales, which also includes Zara Home, rose by 7.2% in the first half of your fiscal year 2019-2020 (from February 1 to July 31), to reach 8,895 million euros, according to the information sent by the company to the National Securities Market Commission (CNMV).

Specifically, Inditex's flagship remains the most invoiced brand in the group. The company decided to group the report of Zara and Zara Home due to the emerging synergies between both concepts. The objective is to maximize the operational and management impact of the brand by combining the online and in-store sales platform.

In line with the announcement of the greater integration between Zara's and Zara Home's online operations, Zara Home's collections are available on Zara's website in the United Kingdom since September 17.

The company expects to launch this program progressively in new markets throughout this year. So, In September-October, it plans to launch the online sale in South Africa, Colombia, the Philippines and Ukraine.

Berskha is the second brand of the Spanish textile giant in turnover, with sales of 1,080 million euros in the first half, which represents 3.34% more compared to the same period of the previous year.

For its part, Massimo Dutti recorded sales of 844 million euros, 4% more, while Pull & Bear raised its turnover 2.5%, to reach 873 million euros.

Berskha is the second brand of the Spanish textile giant in turnover, with sales of 1,080 million euros in the first half

One of the biggest sales increases in this period was Stradivarius with a growth of 12.4%, reaching 776 million euros, while Oysho grew 3.8% (301 million euros) and Uterqüe, 13%, from 46 million euros to 52 million euros in 2019.

By geographical areas, Europe (without Spain) continues to be the first market for Inditex, accounting for 44.4% of sales in the first fiscal semester, compared with 44.2% a year earlier, while Asia and RdM accounted for 24% of sales, down from 24.5% of a year before, Spain 15.6% (16.1% in the first half of 2018) and America, 16% (compared to 15.2% a year earlier).

Forecasts

On the other hand, the company's management stressed that the initial autumn-winter collection, which has been in stores for a few weeks, has been "well received" by customers.

Thus, he has ensured that the sale in store and "online" at constant exchange rate grew by 8% from August 1 to September 8, while The company estimates that the group's comparable sales will grow between 4% and 6% in 2019.

Inditex has pointed out that the expected ordinary investment figure for 2019 will be around 1,400 million euros, mainly due to the opening of a new commercial area in key locations, and provides for an ordinary investment growth below the growth of space in the coming years.

The textile multinational obtained a net profit of 1,549 million euros in the first half, which represents an increase of 10% over the same period of the previous year, while sales beat their historic ceiling, reaching 12,820 million euros for the first time, which represents an increase of 7%.

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