Important clothiers with differing results
TextileFuture has reported on H&M results, and today we inform on Spanish Inditex (Zara) and American Limited Group
Contrary to Swedish H&M Hennes & Mauritz Inditex Group reports better results, namely a five percent increase of net sales to EUR 3.6 billion in the first quarter (End of April) and a two percent higher income of EUR 438 million. At the end of April the group had 6058 stores in 86 countries. New major ones were opened in the Russian Federation, Japan and China. The new openings amounted to 49 (net) in 30 countries. Gross profit rose against the same quarter in 2012 from EUR 2058 million to EUR 2140 million. However gross margin dropped slightly from 60.2 % to 59.6 %. EBIDA dropped from EUR 764 million to EUR 749 million and EBIT from EUR 577 million to EUR 559 million, but net income rose from EUR 432 to EUR 438 million.
For Inditex the strategy to rapidly enhance its store network through the opening of new stores seems to pay off. Over 10000 new jobs were created during the past 12 months. Store sales in local currencies between May 1 and June 7 increased eight percent.
In line with the announced expansion plans, Zara Home opened its debut stores in Osaka and Yokohama, Japan and in Panama. Oysho opened its first stores in Pnama and Columbia, the latter in the vicinity of Calle 82, Bogotá’s busiest business district. Stradivarius and Bershka opened their maiden stores in the Philippines and Bershka entered also the Tunisian market the first time ever. Investments are made in Spain and the resulting ongoing facility expansion continues as scheduled. Already inaugurated is the new Massimo Dutti head office in Tordera, Catalonia, and expansion work continues at the logistics platform in Zaragoza. Planning has begun for the new distribution centre at Cabanillas (Guadalajara). Also expansion work is going on at the group’s headquarters in Arteixo, entailing 70000 m2, mainly to enhance current sales facilities of Zara and Zara Home.
Following the launch of its online sales platform in Canada, Zara is currently its products online in 23 countries (19 European markets, the USA, Japan, China and Canada), added in autumn will be online shopping in the Russian Federation.
Inditex revamped also 25 of the top flagship stores around the globe. The most noteworthy openings included the Zara store opened on Istanbul’s Istiklal Street, now home to the new store image, further Bershka’s store on Prague’s busiest shopping thoroughfare, Na Prikope, and von Via dell’ lndipenza in Bologna , Italy, as well as the Stradivrius store opened on Rue Saint Ferreol in Marseille (F). After closing in may, the group reopened the refurbished Zara stores on Madrid’s Gran Via, Seoul (South Korea) M Plaza and London’s (GB) Brompton Road. Pull & Bear opened its first time ever store in German in Berlin and Stradivarius debuted in Verona (I) and Zara entered the Indian city of Jaipur.
The start of the second quarter 2013 is promising with an increase of eight percent during May 1 and June 7, 2013.
Zara ranks 48 among the 50 Best Global Green Brands evaluated by Interbrand. It is the first year that also Spanish companies were included in the representative survey examining the gap that exists between a corporation’s environmental practices and consumer’s perception of those practices. The report provides the insight for companies needed to develop robust strategies having a positive impact on environment and communities in which these operate. Others on Interbrand’s list are Adidas (rank 22) and Nike (rank 26), both sporting goods and H&M (rank 42).
Now let’s turn to American Limited Group, Victoria’s Secret s Stores (1023 stores) increased sales by four percent (9 %) in May, Bath & Body Works (1564) had three percent (7 %) more sales, La Senza (157) added 4 % (-8 %) more sales and Limited Brands also three percent (6 %) more revenues. Victoria’s Secret direct sales increased by 4 % ( 5 %). It has to be added to the mentioned Victoria’s Secret stores 26 units in Canada and two in Great Britain and to La Senza 157 units in Canada, and to Bath & Body 74 in Canada. In addition there are also 29 Henri Bendel stores to take into account. Thus there were 2875 stores in grand total for the group reporting sales of USD 3005 million (USD 2826 million) for the 17 weeks ended June 1, 2013, or six percent more and for the four weeks ended June 1, 2013 sales amounted to USD 737 million (USD 671.9 million). Comparable store sales increased three percent for the same period.