Spanish retail giant Inditex reports leap in profits
INDITEX has reaffirmed its position as the world’s biggest clothing retailer after announcing an 18% leap in first-quarter net profits in 2017.
The positive news coming out of the Spanish company aligns with forecasts from industry analysts as it pulls further clear from its nearest rivals.
Figures were confirmed on Wednesday, with its net profit standing at €654m and earnings before interest, tax, depreciation and amortization (EBITDA) at €1.1bn. Sales rose by 14% to €5.5bn.
Such performance has been put down to considerable success online and also its capacity to get the most on-trend items quickly to customers.
The positive currency market has also had an impact as nearly half of its outlets report earnings in currencies other than the Euro.
Two thirds of Inditex’s sales are generated through the Zara brand, which has over 2,200 stores in 93 countries globally, with Spain its biggest market with 436 shops.
Zara was recently included on Forbes’ list of Most Valuable Brands having been valued at $11.3bn.
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