Assets
Aktivs
As of March 2018, Inditex includes several brands:
and others.
The number of stores is 7475.
Performance indicators
The fiscal year ends at the end of January.
2020: Revenue decline by 28%, to 20.4 billion euros, profit - three times
At the end of 2020, Inditex's revenue fell by 28%, to 20.4 billion euros, while in 2019 the figure was 28.29 billion euros. The net profit of the owner of Zara, Pull & Bear, Bershka and other brands collapsed three times in 2020, reaching 1.104 billion euros, in 2019 the profit was 3.65 billion euros.
The negative change in the company's financial performance was affected by the COVID-19 coronavirus pandemic, against the background of which retailers were forced to close physical stores for a long period of 2020. About 30% of Inditex stores remained closed by January 31, 2021, when the company's fiscal year ends and 52% were subject to restrictions. In some countries, Inditex stores remain closed (by March 8, 2021), the share of closed stores of the company reaches 15%. The company, which operates 6,829 stores worldwide, expects almost all stores to be open by April 12, 2021.
Zara (Zara Home inclusive) in 2020 accounted for 14.13 billion euros of revenue, Pull & Bear - 1.43 billion euros, Massimo Dutti - 1.2 billion euros, Bershka - 1.77 billion euros, Stradivarius - 1.28 billion euros, Oysho - 522 million euros, Uterqüe - 75 million euros.
However, pandemic restrictions had an impact on a fairly sharp increase in Inditex's online sales. For 2020, they grew by 77% and amounted to 6.6 billion euros. Visits to the online store increased by 50%. In 2020, sales through the Inditex app for smartphones were also recorded - it was downloaded more than 132 million times.
Inditex, which sells apparel in more than 200 markets around the world, has mitigated some of the potential damage from demand uncertainty during 2020 through tight management of its supply chain, with inventories down 9% year-on-year despite unsustainable sales.
By March 2021, Inditex had finally closed 751 of the 1,200 stores it planned to close by the end of the year, in favour of investing in leading points through which customers could be served both online and in person.[1][2]
Business in Russia
2022
Obtaining permission to sell business in Russia to Daher Group with the right to return to the country's market
In March 2023, Inditex SA received permission to sell its business in Russia to Daher Group from the United Arab Emirates.
Under the terms of the agreement, Daher will operate in Russia under its own brands, but if Inditex wants to return to the country in the future, the agreement provides for the ability to do this through a franchise.
Daher Group decided to sell the Spanish company's brand items under different names.
Daher is based in the United Arab Emirates and has ties to Azadea, a Lebanese company that operates Inditex franchises in the Middle East.
Loss of 2.2 billion euros due to curtailment of business in Russia
The Spanish company Inditex, which owns the brands Zara, Pull & Bear, Massimo Dutti, Oysho, Bershka and Stradivarius, lost approximately €2.21 billion in 2022 due to the depreciation of its assets in Russia. Such data are provided in the financial report published on March 15, 2023.
Inditex's revenue on a global scale in 2022 reached €32.6 billion. This is 17.5% more than in the previous year, when the result was €27.7 billion. It is noted that sales showed positive dynamics in all key geographical regions - both in ordinary stores and on the Internet. In particular, the revenue of online platforms rose to €7.8 billion. The company's year-on-year net income increased by about 27%. In 2022, Inditex earned €4.1 billion against €3.2 billion a year earlier.
It is said that Inditex, due to the current geopolitical situation, will completely close 269 out of 514 stores that operated in the Russian Federation. The remaining outlets will be transferred to the Lebanese Dagher Group. At the same time, Inditex CEO Oscar Garcia Maceiras does not exclude the likelihood of returning to Russia if the situation stabilizes.
 | If we decided to resume activities in Russia, because the situation has changed - and I, of course, do not think that this will happen in the foreseeable future - we could continue to work in those stores that we transfer to the Dagher group, - quotes the Financial Times as the head of Inditex. |  |
Oscar Garcia Maceiras also said that if returned to the Russian market, Inditex will operate "in its own format," and the Dagher group will be able to work on a franchise. The company also plans to develop business in the United States and use the bulk of its planned capital expenditures of €1.6 billion to open stores and expand the retail chain around the world.[3]
Plan for the return of Bershka and Pull & Bear brands to Russia under the new names Ecru and DUB
In March 2023, it was announced that Bershka and Pull & Bear would return to Russia in April 2023 under the new names Ecru and DUB. It is clarified that the opening of stores of the mentioned brands was postponed to April due to earthquakes in Turkey.
Plan for the creation of Russian clothing brands
The buyer of the Russian business of the Inditex group, the Lebanese company Daher, will create local clothing brands specifically for Russia. Some of these products will be sewn by domestic enterprises. There will be fewer brands than the Spanish company.
Transfer of fashion stores to New fashion brand run by Lebanese Dagher Group franchisee with buyback option
Inditex stores will remain in Russia under the name "New fashion" (New fashion). Not all collections of the brand will be present in stores. A total of four stores are planned to open. The Russian office will continue to work, but already under the leadership of the Lebanese businessman Dagher Group.
The first several hundred Zara stores under the new management will be opened in Russia in early spring 2023 reported in the Ministry of Industry and Trade of Russia. It is noted that the company reserves the right to repurchase shares.
Growth in deliveries in Russian online retail
In August 2022, Inditex increased the supply of clothing in Russian online retail. We are talking about the autumn-winter collection. The number of names from Bershka on Wildberries in August increased by 126% compared to June, from Zara - by 113%, from Pull & Bear - by 56%, and from Stradivarius - by 473%.
Estimate of possible losses when leaving Russia at $300 million
In July 2022, the losses that the Spanish Inditex would incur when leaving Russia were estimated at about $300 million.
Start selling goods through Wildberries
On June 10, 2022, online retailer Wildberries began selling Massimo Dutti and Pull & Bear brands, part of the Inditex group of companies.
On June 14, the sale of Zara brand products began on Wildberries.
The desire to resume work in Russia against the background of the conflict in Ukraine
Spain's Industria de Diseno Textil SA (Inditex), one of the world's largest clothing retailers, on March 18, 2022, amid a special operation by Russia in Ukraine, announced that it wants to resume work in the Russian Federation when it becomes possible - CEO Oscar Garcia Maseiras. The company also continues to pay employees in the Russian Federation after a temporary suspension of work against the background of Russia's special operation in Ukraine.
A similar statement was made a month later on April 20, 2022.
On May 27, 2022, it became known that Inditex transferred some employees in the Russian Federation to idle mode.
On June 9, 2022, it became known that Inditex would not resume work in Russia.
2020: Lefties store closures
Inditex Holding in 2020 decided to close Lefties stores in Russia.
2018: Several brands make clothing in Russia
In April 2018, it was announced that the Zara chain of stores would launch clothing that is produced in Russian factories. According to the Deputy Minister of Industry and Trade of the Russian Federation Viktor Yevtukhov, Zara is not the only Inditex brand that already cooperates with factories located in Russia. Massimo Dutti, Oysho and Tempe also followed this path.
Joint production of Zara and Russian enterprises began in 2017. Factories began sewing precision hosiery products. Production will now be expanded with suits, trousers, blazers and men's, women's and children's shirts.
History
2022: Inditex staff push for €322 a month pay rise with strike threat
In 2022, about 1,000 workers at Zara stores and other Inditex fashion brands announced strikes on December 23, 2022 and January 7, 2023, key dates for the group's sales, demanding higher wages.
In December 2022, it became known that Inditex store workers canceled planned strikes in the company's hometown in northern Spain after an agreement to raise wages by 25% (322 euros), according to a press release from the Galician Inter-Union Confederation, a trade union representing the interests of sector workers.
"We have come to an agreement for an immediate increase (in wages) of €322 a month... The intense and arduous struggle that Inditex store workers in the province of La Coruña have waged for months has finally borne fruit in the form of a tentative agreement with a multinational company. "
2020: €2.7bn investment plan in technology
In mid-June 2020, the Inditex group of companies, which owns the Zara brand and other clothing chains, announced an investment of 2.7 billion euros in the development of various technologies. They should make it easier to track the necessary goods by erasing the border between purchases on the Internet and in the store, reports Reuters.
With the help of the fashion store application, customers will be able to view the inventory of a certain store in order to buy all the necessary goods on the same day, as well as book a room in the fitting room, find things in the store using a card and make purchases on their own using QR codes.
Inventory controls and high-tech tools for shoppers to find items both in store and online are supposed to provide increased sales.
According to the company, one billion euros of investment is intended to develop a patented technology platform. A spokesman also said the technology will be rolled out to Inditex stores in the next three years.
To track stocks, Inditex uses radio frequency technology in the form of a chip attached to a beacon on clothes. This tracking technology is already in use at Zara and Massimo Dutti and will be applied by all Inditex group brands by the end of 2020.
The COVID-19 coronavirus pandemic and restrictions imposed around the world to combat it have led to most Inditex stores being closed. The company said just over half of its stores around the world are now open. In March 2020, Inditex wrote off unsold spring/summer brands worth 287 million euros due to coronavirus quarantine
The retailer expects online sales to account for more than a quarter of total sales by 2022.[4]
2017: Revenue growth to €25.3 billion, 183 new stores opened
Inditex's turnover in 2017 rose 9% to 25.3 billion euros. 60% of sales came from Europe. It is also noted that sales on the Internet amounted to 10%.
Inditex's 2017 net profit rose 7% to reach 3.37 billion euros. Thus, the textile giant bypassed its longtime competitor, the Swedish H & M.
Inditex's profit growth in 2017 was not as rapid as in 2015 and 2016, but exceeded expert expectations. H&M, in turn, earned 1.6 billion euros in 2017.
In 2017, Inditex invested 1.8 billion euros in the development of the retail network, including online stores.
The company has opened 183 new outlets, the total number of which in the world has grown to 7475. The main markets for Inditex products, in addition to Spain, are Portugal, countries of North Africa and Eastern Europe, as well as Turkey.
2015: Revenue growth 15% to €20.9 billion
In fiscal 2015, revenues at Spanish textile giant Inditex increased sharply, driven by rising sales levels and successful international expansion. According to the official statement of the company, the size of its net profit for the 12-month period ended at the end of January 2016 amounted to 2.88 billion euros (+ 15%). Inditex's results were slightly better than those predicted by analysts from Factset, which spoke of 2.85[5]%.
The holding's sales volumes, in turn, increased by more than 15% and reached 20.9 billion euros. This dynamics was due to the active growth of the company in all regions of the world where its brands are represented. So, in 2015, the main competitor of the Swedish H&M opened 330 stores in different countries. The outlet in Honolulu (Hawaii) became seven thousandth in a row.
Representatives of the holding note the strengthening of its presence in the online sphere, especially in Asia: online stores of Inditex brands operate in 29 international markets.
"Investments in head offices, logistics platforms and new technologies have led to a significant increase in the number of new jobs and allowed the company to attract talent around the world," said Pablo Isla, chairman of the holding, in a press release.
So, in 2015, Inditex opened 15,800 vacancies, 4,120 of them in Spain.
In conclusion, the authors of the report noted that the board of directors intends to come up with a proposal to pay dividends in the amount of 0.6 euros for each of the company's shares.
2013: Death of Rosalia Mera
In August 2013, Inditex co-founder Rosalia Mera died at the age of 69. The causes of death were not specified in the message. The regional newspaper La Voz de Galicia writes that Mera had a stroke when she spent a vacation with her daughter Sandra in Menorca (Balearic Islands). The entrepreneur was transported to the mainland by plane and died in the evening in the hospital[6].
Inditex retail chain at this time has six thousand stores around the world.
2012: The founders of the company are among the richest people on the planet
In 2012, the Inditex group had sales of 15.9 billion euros (21 billion dollars). At the end of 2012, the Spanish entrepreneur co-founder of Inditex and the richest woman, Spain Rosalia Mera, took the first line of the Forbes rating, which presents women who earned a fortune on their own. Amancio Ortega is one of the four richest businessmen in the world with a fortune of $56.9 billion.
2001: IPO
Following Inditex's 2001 IPO (initial public offering), Rosalia Mera became the owner of more than five percent of Inditex's shares, which formed the basis of its $6.1 billion fortune.
1986: Founders divorce but do business together
In 1986, Mera and Ortega divorced, but continued to develop the business together.
1975: First Zara store opened
In 1975, Rosalia Mera and Amancia Ortega opened the first Zara store.
1963: Amancia Ortega and Rosalia Mera start making clothes
Rosalia Mera began working in a clothing store at the age of 11. She and her husband, Amancia Ortega, began making clothes on their own in 1963.
Notes
- ↑ [1] INDITEX FY2020 RESULTS 77% online sales growth cold comfort as Inditex sees 70% slide in profits in 2020
- ↑ [2]
- ↑ FY2022 Results
- ↑ Inditex invests in technology to merge online with in-store shopping
- ↑ billion. Revenues of textile holding Inditex rose by 15
- ↑ The richest Spanish woman died
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