Zara Parent Inditex Net Sales 5 Billion 569 Million Euro In The First Quarter

Inditex India Textile Group began to weaken in the two quarter

According to the world clothing shoes and hats net, June 14, 2017: the world's largest clothing The retailer Inditex SA (ITX.MC) Indo Textile Group (the full name Industria de Diseno Textil SA) continued to expand its gap with its struggling competitors in the first quarter with 14.1% revenue growth and 18.1% profit growth.

In the first quarter of 2-4, the net sales of Inditex SA India India Textile Group rose from 5 billion 569 million euros in the same period last year to 5 billion 569 million euros, slightly higher than the 5 billion 540 million euros expected by the market, and 12.5% of the fixed exchange rate. In the 2017 fiscal year ended June 3rd, sales increased by 12% on the basis of local exchange rates. Soci e t e G n n rale SA analyst at Anne bank Critchlow pointed out that the net sales in the first five weeks of the two quarter increased by 10.8% on the basis of local exchange rates, while the same store sales increased by 4.8%-5.8%, while the same period last year grew 9%, and the ring and year-on-year slowed down.

Pablo Isla Isla, chairman and chief executive officer of Inditex SA Indo Textile Group, did not respond to the weakening sales momentum after the earnings analysts' conference call. market Still "very healthy".

Richard Chamberlain, an analyst at RBC Capital Markets LLC and Canada capital market analyst, pointed out that in the short term, the share price of Inditex SA (ITX.MC) would be under pressure, which fell by 2.1% to 35.10 euros in early trading today.

Inditex Indo Textile Group's Stradivarius brand total number of global stores exceeded 1000

During the first quarter, Inditex SA, India and India Group opened 93 stores in 30 markets. As of April 30th, the total number of stores in 93 markets increased to 7385, a net increase of 300 over the same period last year. Among them, Zara contributed to 2/3 sales, accounting for 2087, and Bershka and Stradivarius had thousands of stores respectively.

Quarterly net profit of 654 million euros, basically meet the market expectations of 655 million euros. The core profit of EBITDA was 1 billion 113 million euros, up 16.5% from 955 million euros in the same period last year. Analysts expect this year's exchange rate trend to be more beneficial to the group's performance. Anne Critchlow expects the group's EBIT and profit margins to be positive.

The gross profit margin in the first quarter was 58.2%, an increase of 10 basis points over the same period last year, and EBITDA profit margins also increased by 40 basis points to 20%. Group management at today's analyst conference call reiterated that the gross margin will not fall this year.

During the period, the group said that the continuous integration of online and offline channels has achieved results. Now, about 1/3 orders are shipped from Zara stores. Many customers are also inclined to return online orders to stores, thus saving logistics costs.

This year, the Inditex SA Indo Textile Group's online expansion is mainly concentrated in Southeast Asia. It has landed in Singapore, Malaysia, Thailand and Vietnam, and will open up electricity supplier channels in India market in autumn. Anne Critchlow estimation Electronic Commerce It currently accounts for about 7% of the group's sales.

By contrast, the first quarter results of H&M's parent company Hennes & Mauritz AB (HMb.ST) released in March showed a 3.5% decline in net profit, while sales rose by only 4% based on the local exchange rate, and the first decline in February was 4 years later.

At the time of the deadline, the Inditex SA (ITX.MC) yen fell narrowed to 0.92% at noon, 35.53 euros, narrowing the cumulative increase to 9.1% in 2017, and Hennes & Mauritz AB (HMb.ST) fell 15.8%.

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