Zara Parent Company's Medium-Term Income Keeps Double-Digit Growth

According to the world clothing shoes and hats net, the world's largest

The retail Inditex SA (ITX.MC) Indo Textile Group (Industria de Diseno Textil SA) has maintained double-digit growth in the medium term, with revenue growth of 11.5% to 11 billion 671 million euros in the period, a record 10 billion 465 million euros in the same period last year.

However, the revenue growth of Indo textile in the two quarter was only 9%, a rare digit growth in the last two years, a sharp slowdown compared with the 14.1% in the first quarter. In addition, most of the purchases occurred in Europe due to the supply chain strategy of the company, and the strong euro continued to exert pressure on its gross profit margin.

During the period,

Brand Stradivarius grew at 9%, Zara, Pull&Bear, Massimo Dutti, Bershka, Oysho, Zara Home, Uterq u, and the other 7.

Both maintained double-digit growth.

According to the annual report released in mid March, the gross margin of Indy textile in the 2016 fiscal year recorded a new low of 8 years. As of the first half of July 31st, the gross profit margin of the company fell by 40 basis points, from 56.8% to 56.4%, the gross profit margin of the two quarter was lower to 54.8%, and gross profit increased by 10.7% to 6 billion 582 million euros, compared with 5 billion 945 million euros in the same period last year. The EBITDA growth rate was 8.5%, from the euro to the euro, and the EBITDA profit margin was down.

Societe Generale Anne Critchlow Critchlow, an analyst at Societe Generale, said the strong euro made the market worried about the gross profit margin in the remaining two quarters of the Indo textile financial year. In her report, she pointed out that the non Euro operating costs had a positive impact on the group, but had a negative impact on sales by 2%.

Despite the great impact of the exchange rate, Indo textile said its spring and summer products have been adjusted accordingly, while group chairman and chief executive officer Pablo Isla said that the model of the company's offline integration line has the ability to provide continued growth.

At present, the Zara and Indo textile models are still optimistic about the industry, especially in the leading industry of online business. The group and Zara founder Amancio Ortega Gaona have also won the world's richest number many times, and he touches the richest throne for the third time at the end of August.

Indy said that in the first half of the year, the group's sales increased by 6% (including 86% of the stores and online channels), and the fixed exchange rate increased by 11%, better than the market expected 1-2 percentage points.

In the first 7 weeks of the three quarter of August 1st -9 17, the group fixed exchange rate calculated 12% higher than the market expectations, and by the end of August the three quarter, the largest rival of Indo textile H&M Hennes & Mauritz AB (HM-B.ST) Haines Maurice Group sales fixed exchange rate increased 4%.

In the first half of the year, the net profit of Indo textile group was 1 billion 366 million euros, up 8.8% year on year, and 1 billion 256 million euros in the first half of fiscal 2016, in which the increase in the two quarter was only 1.5%.

Indo textile increased 113 stores to 7405 in the first half of the year, more than 83 in the same period in fiscal 2016.

The group said it will continue to expand its stores and online markets. So far this year, the group online market has recently entered Singapore, Malaysia, Vietnam and Thailand. It will visit the India market in October 4th, while the entity business will show up in 93 markets.

Indo textile intends to send a median dividend of 0.34 euros per share.

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