Inditex Group Continues To Expand Physical Stores And Online Businesses

Zara's parent company Inditex group recently announced its latest financial results. The net profit for the fiscal year ending January 31st was 5.2% gain, net profit of 2 billion 500 million euros (about 3 billion 300 million US dollars), slightly higher than the market expected 2 billion 490 million euros, and net sales increased 8.3% to 18 billion 100 million euros (about 23 billion 800 million US dollars) throughout the year.

according to Corporate earnings This shows that sales of physical stores rose 13% in fixed currencies from February 1st to March 14th this year, which means that sales growth in 2015 will accelerate. Inditex group said it will continue to expand its business. Physical store And the new online market business.

In the past year, Inditex group has opened 343 branches in 54 markets, bringing the total number of shops to 6683. But because of the rising cost, the annual expenditure is 1 billion 400 million euros (about 1 billion 800 million US dollars). On line sales, South Korea and Mexico have joined the company's 27 e-commerce market, while Taiwan, Hong Kong And three markets like Macao are expected to increase online sales this year.

"In view of the performance of the company in recent years, a special profit sharing plan has been approved. In the next two years, the employees will share the profit growth of Inditex group. All over the world, all employees who have worked in a group for over two years, including shops, manufacturing, logistics, creative and subsidiary employees, will be eligible. Inditex group said. The eligible beneficiary staff is about 70000 people, who will get 10% of the annual profit growth, which will not exceed 2% of the company's annual gross profit.

Inditex group is one of the world's four largest fashion retail groups from Spain. Its brands include ZARA, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Uterque, and Stradivarius eight brands. ZARA is one of the most successful and considered to be one of the most valuable brands in Europe.

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In the four quarter ended January 31, 2015, the net loss of J. Crew Group Inc. was US $30 million 600 thousand, which included a $24 million impairment loss and a net profit of 5 million 900 thousand US dollars in the 2013 fiscal year. In the three quarter, in response to the trend of consumers moving from physical stores to online shopping, the group has made $684 million non cash impairment for its physical stores and J. Crew brands, resulting in a huge loss of 607 million 800 thousand US dollars in the three quarter.

The main reason for the impairment loss is the weak performance of the J. Crew brand women's wear series. Millard "Mickey" Drexler admitted the failure of the category last year after the earnings analysts' conference call. J. Crew brand sales fell 0.1% in the fourth quarter, down from 621 million 600 thousand euros in the same period to $620 million 700 thousand in the same period last year, while sales in the same store dropped 5%, while the same period increased 3% in the previous year. The annual sales increased slightly from 3.7% to 2 billion 295 million 100 thousand dollars, 2013 in the fiscal year was 2 billion 212 million 700 thousand dollars, and the growth momentum came from men's clothing series. However, it was impossible to prevent women's wear series from dragging down the same store sales by an annual reduction of 1.9%, while the previous year had 3% growth.

Two years ago, consumers and market leaders began to criticize J. Crew, who is only concerned about fashion, and goes far away from the classic "preppy" style, which is famous for its brand name and leisure. Millard "Mickey" Drexler was also Frank at the meeting. The J. Crew dress was a bit spoiled, and there were too many unpleasant styles and profiles. "I also think that J. Crew dress is not like J. Crew dress," and the promotion and information transmission of the brand has not reached its due level. He pointed out that the group had noticed the problem of style very early, and had called the design and sales team to make improvements. Some of the results can be seen in the store. "We have made the original Millard," said Drexler, "Mickey", but he said he could not predict whether the customers would buy it.

On the other hand, the group's young vice card Madewell continued strong growth momentum, and the fourth quarter and full year sales rose 33.5% and 35.2% respectively, rising to 63 million 657 thousand US dollars and 245 million 300 thousand US dollars. The fourth quarter and year-on-year sales increased by 14% year-on-year, significantly faster than the previous year, pushing the group's overall sales in the four quarter up 2.8% to 705 million 300 thousand US dollars. The group plans to add about 20 Madewell this year to continue its rapid growth.

Overall, the annual sales of J. Crew Group Inc. totaled 2 billion 579 million 700 thousand US dollars, up 6.2% from the previous year's US $2 billion 428 million 300 thousand. The adjusted EBITDA interest tax depreciation amortization dropped to $255 million 200 thousand from $370 million 200 thousand in the previous year, a drop of 31.1%. Because of the $684 million impairment loss in the three quarter, the net loss in the whole year was as high as 657 million 800 thousand US dollars, and the net profit in the previous year was US $88 million 100 thousand. Gross margins sharply shrank by 380 basis points to 37.6%, 41.4% in the previous year.