Zara profits soar 41pc to beat expectations

1st April 2005, Comments 0 comments

1 April 2005, MADRID- The Spanish clothing group Inditex, which owns the retail chain Zara, has posted a 41 percent jump in 2004 profit to EUR 628 million, outstripping analysts' forecasts.

1 April 2005

MADRID- The Spanish clothing group Inditex, which owns the retail chain Zara, has posted a 41 percent jump in 2004 profit to EUR 628 million, outstripping analysts' forecasts.

Market predictions had ranged from EUR 579-614m.

Sales rose 23 percent to EUR 5.6 billion from 4.59 bn in 2003 as
the group, which earlier this month said it would beef up its Asian presence, opened 322 new shops.

Inditex said operating profit had jumped 48 percent to 925.2 million euros.

A breakdown of sales showed that 37.3 percent were made in Europe, with the exception of Spain, up from 35.5 percent in 2003.

Spanish sales dipped to 45.5 percent of the total from 46.1 percent.

The group put its strong results down to higher prices in some Latin American markets, less impact from foreign exchange operations and "better stock management".

Inditex runs a rigorous just-in-time business model to meet popular demand.

The group forecast investment of up to EUR 800m in 2005 from EUR 741.7m last year as it adds to its presence in Asia, where outlets are now focused on Japan.

[Copyright EFE with Expatica]

Subject: Spanish news

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