INDITEX Group Created More Than 11,900 New Jobs with 2,385 in Spain.
June 15, 2016
Photos Courtesy of Inditex
Arteixo, Spain – Spain’s leading apparel and home furnishings group Inditex has just released it first quarter results. Net sales are up and are strong. The company has also reported very impressive jobs growth over the same period.
- 4 Pablo Isla highlighted that “thanks to the Group’s strong growth we are able to generate jobs in all our business markets, most notably, in Spain”.
- 4 In April, the company distributed 10% of the growth in consolidated profit generated in 2015 among employees as part of its extraordinary employee profit-sharing plan.
- 4 Inditex achieved a strong operating performance, with like-for-like sales growth in all geographies.
- 4 Sales growth in constant currency was 17%.
- 4 Net sales totalled €4.9 billion. Net profit rose by 6% to €554 million.
- 4 Inditex has extended its reach to 91 markets having opened its maiden stores in Aruba, Nicaragua and Paraguay.
- 4 The Group’s eight brands opened stores in 31 different markets during the first quarter, bringing its worldwide network to 7,085 stores. The Inditex Group registered net sales growth of 12% in the first quarter of 2016 (1 February – 30 April) to €4.9 billion, driven by a solid business performance and shaped by like-for-like sales growth in all geographical markets. In constant-currency terms, revenue growth was 17%. Net profit amounted to €554 million, 6% more than in the first quarter of 2015.
The Group has generated 11,936 new jobs in the last twelve months, 2,385 of which were in Spain. It is worth highlighting that in April the Group also distributed the 10% of the growth in consolidated profit of 2015 among the Group’s staff employed in its stores, manufacturing and logistics facilities, brands and subsidiaries under the scope of its extraordinary employee profit-sharing plan. The second phase of this scheme will be distributed in 2017, following the same criteria.
Inditex’s Chairman, Pablo Isla, highlighted that “Thanks to the Group’s strong growth we are able to generate jobs in all our business markets, most notably, in Spain”.
In parallel, the Group continues to invest in its online and international expansion to support the continued modernisation of the Group and its operations. One highlight is the expansion of Pull&Bear’s head offices, which now occupy 20,000 square metres over two floors. The building was constructed according to the eco-efficiency parameters set out to comply with LEED Gold green building certification to ensure efficient consumption of water and energy. The complex features 30,000 square metres of green space on which around 1,000 trees have been planted.
INDITEX REPORTS GROWTH IN ALL REGIONS
During the first quarter, Inditex expanded its reach to 90 markets, having opened inaugural stores in Aruba and Nicaragua. Zara, Pull&Bear and Bershka made their début in Nicaragua with stores in Galerías Santo Domingo, one of Managua’s most prominent shopping centres. Zara’s maiden store in Aruba is situated in Plaza Daniel Leo – one of the main shopping streets in the country’s capital, Oranjestad.
In addition, all of the Group’s brands continued to expand globally with their fully integrated offline and online store model. At the end of the first-quarter, the Group had 7,085 physical stores, having opened a net 72 stores in 31 markets.
Some of the most noteworthy openings included the Zara store in the heart of New York’s SoHo district, in a cast-iron building which epitomises the late-nineteenth century retail architecture emblematic of this part of Manhattan. In addition, Pull&Bear opened its first store in Luxembourg, on Grand Rue; Zara Home made its début in South Africa and Serbia with new stores in Johannesburg and Belgrade, respectively; Stradivarius opened its first flagship store in Amsterdam, the Netherlands; and Oysho opened its maiden store in Belgium, in the city of Knokke.
It is also worth highlighting the refurbishment and expansion work carried out at the Bershka store on Vittorio Emanuele in Milan (Italy) and the Massimo Dutti store on Avenida Presidente Masaryk in Mexico City, one of the country’s most important shopping streets.
The Group also remained very active throughout May and June. For example, Zara and Zara Home were the first brands to establish a presence in Paraguay, while Massimo Dutti inaugurated its first store in India (watch the video), Stradivarius opened its largest- ever store on London’s Oxford Street and Pull&Bear opened a flagship store in Stockholm (Sweden).
With regards to online, all of Inditex’s brands expanded their ecommerce platforms in the European Union, having launched their online stores in Bulgaria, Croatia, Slovakia, Slovenia, Estonia, Finland, Hungary, Latvia, Lithuania, Malta and the Czech Republic (see appendix). As a result, Inditex now has an ecommerce presence in a total of 39 markets worldwide.