Finance Update

Worlds biggest clothing retailer ZARA reported profits of 3.44 billion euros ($3.88 billion)

Investors fret about Zara-owner’s slowing sales growth.

The world’s biggest clothing retailer reported profits of 3.44 billion euros ($3.88 billion) on sales of 26.15 billion euros.

TFMNews

Zara owner Inditex reported a 2 percent rise in full-year profit on March 13 as it launched Zara online into 106 new markets in November and benefited from favourable comparisons to unseasonably cold weather last year.

The world’s biggest clothing retailer reported profits of 3.44 billion euros ($3.88 billion) on sales of 26.15 billion euros, slightly lower than analysts’ expectations.

Unlike many in the troubled apparel sector, Inditex has been able to avoid heavy discounting thanks to its tightly controlled inventory and its ability to get looks on sale in a few weeks allowing it to respond to fast-changing trends.

Online sales grew by 27 percent in 2018, reaching 3.2 billion euros, or 12 percent of sales. Inditex estimated total like-for-like sales growth of between 4 to 6 percent for this financial year.

Sales in shops and online at constant exchange rates rose 7 percent in the first week of the new financial year, from Feb 1 to March 9.

Cash rich Inditex said the total dividend for the financial year would be 0.88 euros per share, an increase of 17 percent.

Source: Reuters on MoneyControl

– TFM News

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Prakash Poojary
Business Analyst

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