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Inditex records sales growth

By FashionUnited

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Spanish fashion group Inditex has recorded a net sales gain of 21 percent to €6.741 million in 2005. The company, which owns popular brands like Zara and Berschka, said net income rose 26 percent to €803 million.

The company claimed the rise in sales is due to both new available selling space, with 448 openings last year, and a 5 percent rise in like-for-like sales. Gross margins improved 80 basis points to 56.2 percent, with operational gains rising 21 percent.

Thanks to international growth, store sales outside Spain represent 57 percent of total revenues. Excluding Spain, the European market represented 38.8 percent of revenues. The group also entered five new markets last year: Monaco, Costa Rica, Indonesia, the Philippines and Thailand. This year it also opened stores in Tunisia, Mainland China and Serbia. Thanks to the expansion activities, the group now employs a work force of 58,190.

The group said the expansion will continue to focus on Europe this year, with the Asia-Pacific region also being developed. By the end of this year, Inditex plans to open its first Korean store through a joint-venture with retail group Lotte. Inditex will have an 80 percent stake in the newly formed company. The group expects to open between 410 and 490 stores this year.

Inditex