ZARA Parent Inditex Released A New Quarter Earnings Report Exceeding Expectations

Recently, ZARA's parent company Inditex has released its first quarter earnings report, which shows that the group's turnover and net profit are growing. This huge Spanish apparel group is still expanding.

From January 30th to April 30th this year, the turnover of Inditex group increased by 12% compared with the same period last year, and net profit increased by 6% to 621 million US dollars.

"Many businesses complain.

But Inditex's data show that their business models can bring high profits.

Bernstein analyst Jamie Merriman said.

Wall Street Journal

It also said that "Inditex is expected to get double income growth every year in the next 5 years."

At present, Inditex has 8 brands, including ZARA, Pull & Bear, Massimo Dutti and Bershka, etc. it has more than 7000 stores in more than 90 countries.

Pablo Isla, chairman of Inditex, said that this year they had created 11936 jobs in the world, more than 2300 of them in Spain, and the group's share price rose 3.5% immediately after the earnings report.

The good operation of the Inditex group also increased the personal assets of its boss Amancio Ortega. Last year, he lived in the second place of Forbes rich list with assets of 707 billion US dollars.

In the first quarter of this year, financial reports also showed that Inditex has opened stores in five new markets, including Vietnam, New Zealand, Paraguay, Aruba and Nicaragua.

This year, they will also vigorously develop e-commerce business, all brands of the group will have electricity suppliers in the European market.

By contrast, rival H&M (Hennes & Mauritz) is having a bad time.

According to H&M's March earnings report

Since last December, H&M's pre tax monthly sales increased by 10%, 7% and 10% over the same period last year, the lowest in nearly three years.

Their first quarter pre interest profit plunged 29.6% to 3 billion 327 million Swedish kronor, and the gross profit margin plunged by 320 basis points to 55% in the first quarter of February 29, 2016, and the gross profit increased 2.2% to 22 billion 699 million Swedish kronor in the first quarter of fiscal year 2016, compared with 22 billion 213 million Swedish kronor in the same period last year.