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    Zara'S First Half Performance Is Gratifying To Achieve Strong Growth

    2016/9/24 9:27:00 162

    ZaraPerformanceBrand Strategy

    Although HM recorded an increase in H&M in the first quarter of fiscal year 2016, it was far less than Zara.

    In the first quarter of fiscal year 2016, sales increased from 8% to 50 billion 624 million kronor, representing an increase of 8% over the same period of last fiscal year, but 8.5% after tax increased to 43 billion 691 million krona.

    Nevertheless, it is still inferior to the 44 billion 80 million Swedish Swedish kronor.

    At the same time, Zara still has an increase of over 12% in leap days and exchange rate fluctuations, and H&M is far behind.

      

    ZARA

    The Inditex group of the parent company recorded strong growth in the first half of July 31st, and its sales increased by 11.1% to 10 billion 470 million euros and about 77 billion 830 million yuan, while its profit rose 7.5% to 1 billion 260 million euros, or 9 billion 360 million yuan.

    In the first half of this year, group store sales rose by 11%. After excluding the exchange rate effect, the same store sales recorded a 16% increase. The core brand ZARA of the group gained 13% higher sales growth, while ZARA HOME gained 17% sales growth. Other brands such as Bershka and Massimo Dutti all recorded a growth in the number of units.

    In the first half of July 31st, the group achieved a profit of 1 billion 606 million euros, 1 billion 580 million euros better than the market expectations, up 7.9% from 1 billion 489 million euros a year earlier.

    Net profit also increased by 7.1% to 1 billion 260 million euros per year, slightly better than the market expected 1 billion 250 million euros.

    The core profit of EBITDA 21.1 billion is also in line with the market forecast of 2 billion 100 million euros, up 7.2% over the same period last year.

    Zara group has 7096 stores in the world, opened 83 stores in the first half of the year, and in September 8th, after the first arrival of Zara brand in Vietnam, the global retail territory expanded to 92 markets.

    Online sales

    In the first half of the year, 39 new markets have been laid out in the 11 new districts. In October of this year, all brands of the group will launch e-commerce in Turkey.

    In the second quarter, H&M group's turnover increased by only 2%, which was 54 billion 340 million Swedish kronor (US $6 billion 590 million), while net profit fell 16.9% to 5 billion 360 million kronor (US $650 million 500 thousand).

    H&M group CEO Karl-Johan Persson pointed out that in addition to the negative impact of the US dollar exchange rate, this is a challenging half year for the global fashion retailing industry. The growth in turnover in the second quarter is lower than expected, and has a negative impact on profits.

    By the end of June, the company had 4095 branches in 62 markets worldwide, and only 3642 at the end of June last year.

    As of August 31, 2016, H&M was in

    China

    The mainland has more than 340 stores.

    Previously, the company has said that it intends to increase about 425 stores this year, mainly in China and the United States.

    Inditex will turn its attention to a larger collection store in the main market. It should respond to the current changes in consumer demand for new needs, look at the domestic market, brand collections and buyers shop mushrooming, while Zara layout in the global market, a flagship store in Antwerp, Belgium, a main shopping street in Galician headquarters in Spain, opened a 5 storefront flagship store. Another brand of the group, Stradivarius, also opened a flagship store in Oxford street, London.

    In the face of the tight layout of Zara, HM is advancing on the road of sustainable environmental protection, followed by men's wear shops and fast lightning. The test results of men's clothing stores in Sweden and Germany are very successful, according to official sources.


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