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

Read more Business NewsMarket News

Dh28 billion surplus in 2018 revenue: UAE Govt

UAE Govt reported Dh28 billion surplus in 2018 revenue

The surplus surge is accredited to the rise in the UAE government’s revenues.

By GulfnewsTFMNews

Abu Dhabi: The UAE government’s surplus posted Dh28 billion in the first nine months of 2018, according to the latest figures released by the Federal Competitiveness and Statistics Authority.

The surplus increase is attributed to the rise in the UAE government’s revenues, which hit Dh304.5 billion in 2018’s first nine months, an increase of 4.8 percent compared to the same period of 2017.

Meanwhile, the expenditures increased from Dh259.3 billion to Dh276.2 billion during the same monitoring period. Total current expenditure as well as capital expenditure also increased by 4.8 per cent in the third quarter of 2018, resulting in the net operating balance recording a deficit of Dh2.5 billion in the third quarter of 2018, compared to a surplus of Dh21.7 billion in the previous quarter.

Oil prices improvements in the second and third quarters of 2018 as well as ongoing fiscal reforms have contributed to diversifying non-energy revenues sources, raising the total government revenues.

Source: GulfNews

– TFM News

⇓ Subscribe[jetpack_subscription_form show_only_email_and_button=”true” custom_background_button_color=”#362e77″ custom_text_button_color=”#ffffff” submit_button_text=”Subscribe” submit_button_classes=”wp-block-button__link has-text-color has-white-color has-background has-dark-blue-background-button-color” show_subscribers_total=”false” ]

Read more Business NewsMarket News

Cathay Pacific Airways profit beating expectations; HK$2.3 billion ($293.05 million) for 2018

Cathay Pacific Airways sees 2018 profit beating expectations, shares surge

Shares surged by as much as 6.6 percent to their highest level since June 2018 after the market reopened for the post-lunch session.

Cathay_pacific-770x433.jpg

(Reuters) – Hong Kong’s Cathay Pacific Airways Ltd said on February 20 it expected to swing to an annual profit of about HK$2.3 billion ($293.05 million) for 2018, more than double analyst estimates, as it undertakes a turnaround plan.

Shares surged by as much as 6.6 percent to their highest level since June 2018 after the market reopened for the post-lunch session.

Before the announcement, 15 analysts polled by Refinitiv I/B/E/S had on average expected the airline to report a profit of HK$1.1 billion for 2018, up from a HK$1.25 billion loss in 2017, as out-of-the-money fuel hedges rolled off.

The airline said in a statement that its passenger business had benefited from capacity growth and improved revenue management, with average airfare prices up despite competitive pressures.

Cathay, which relies on cargo for about a quarter of its revenue, said the freight business was also strong, with rates up and volumes higher.

The airline last year said US-China trade tensions had not hurt its business but it was keeping a close eye on the situation in case trading volumes shifted.

Cathay and Singapore Airlines Ltd are both pursuing turnaround plans designed to cut costs and boost revenue to better compete against rivals from the Middle East, mainland China and budget airlines.

“The company’s transformation programme has had a positive impact,” Cathay said on February 20.

($1 = 7.8485 Hong Kong dollars)

⇓ Subscribe[jetpack_subscription_form show_only_email_and_button=”true” custom_background_button_color=”#362e77″ custom_text_button_color=”#ffffff” submit_button_text=”Subscribe” submit_button_classes=”wp-block-button__link has-text-color has-white-color has-background has-dark-blue-background-button-color” show_subscribers_total=”false” ]