ZARA Officially Changed To Chief Executive Officer To Take Over.

The world's largest apparel retailer, Inditex SA (ITX.MC) Indo Textile Group, has made adjustments to the management structure to accelerate the digital pformation. Executive chairman and chief executive Pablo Isla will step down from CEO and be appointed by chief operating officer Carlos Crespo.

Pablo Isla, 55, commended Carlos Crespo as chief operating officer in the press release during a number of areas, and said his contribution is crucial to the strategic digital pformation of the group and the promise of sustainable development.

He is responsible for science and technology, IT security, logistics Yuyuan, construction and engineering, forensic, procurement and sustainable development.

Zara, Bershka, Pull&Bear and other fast fashion brands in the world have 7500 stores Inditex SA India Textile Group announced last year to use RFID (RFID) system to complete all the physical store digital upgrade, in order to achieve by the end of 2020 through online sales coverage of all parts of the world's goals.

To this end, the group began its physical downsizing in 2012. Over the past six years, it has renovated and expanded 3383 stores and opened up 1400 small shops while opening 3364 stores.

However, the strategy of digital priority did not bring steady growth to the group. In fiscal year 2018, online sales growth slowed from 27% in 2017 to 27%, and sales of 3 billion 200 million euros accounted for 12% of the group's total revenue of 26 billion 100 million euros, a two percentage point increase over 2017. It still lagged behind the H&M Hennes & Mauritz AB (HMB.ST) Haines Maurice group, which accounted for 14.5% of the line sales. In the last fiscal year, the group achieved 30 billion krona, or 2 billion 800 million euros, from the online channel, an increase of 22% over the previous year.

Carlos Crespo joined the Inditex SA Indo Textile Group in 2001 and served as chief executive officer for 13 years before becoming chief operating officer in 2018.

Analysts believe that the recent leap of Carlos Crespo, which has rich audit knowledge and experience, reflects the group's further tightening of entity operating cost control and the increase of digital business resources.

Inditex SA's Indo Textile Group's profit growth ability dropped to its lowest level in five years in 2018. Net profit increased by only 2% to 3 billion 400 million euros, and the market margin was slightly lower than the market expectation. The slight improvement of the gross profit margin of 40 base points to 56.7% also disappointed investors.

Analysts also believe that 7% of the fixed exchange rate growth rate last year confirms the sharp slowdown in growth.

The sustainability of Zara and even the fast fashion industry is being questioned even in the environment of rising clothing sharing and the growing awareness of consumers' environmental protection.

Pablo Isla, a legal education company, became a CEO of the Inditex SA Indo Textile Group in 2005 after being galloping in the financial sector.

Group founder Amancio Ortega Oman Theo Ortega stepped down as chairman in 2011.

Citigroup Inc. Citigroup analyst Adam Cochrane believes that the most important thing for investors is the "Carlos Crespo reporting to Pablo Isla" in the press release, which means that the latter will continue to devote itself to the business development as an executive chairman, that is to say, the overall management strategy and implementation of the management will remain unchanged in the context of optimizing store stores, slowing entity expansion and relying on online channel driven growth.

Soci e t G G n e rale SA, retail analyst Anne Critchlow, believes that the move is aimed at strengthening management rather than direct power pition. "This is not an inheritance plan, and Pablo Isla is not going anywhere," the analyst stressed.

Carlos Crespo also said in the press release that Pablo Isla will continue to release its group performance to the market.

Amancio Ortega, 83, still actively participates in group business, and expands the scale of wealth by investing in real estate all over the world.

In the past half a year, he spent $385 million, $740 million and 7250 and ten thousand dollars to acquire the Washington CBD property, the Seattle Amazon.com Inc. (NASDAQ:AMZN) Amazon office and the Inn Of Chicago Hotel, raising the total value of its global property to over 13 billion US dollars, making it the largest real estate owner in the European super rich.

This year, Amancio Ortega will receive a total dividend of 1 billion 626 million 200 thousand euros from the Inditex SA Indo Textile Group, an increase of 300 million euros over the previous year. The first 813 million euro was issued in May 4th.

Bloomberg data show that since the launch of Inditex SA (ITX.MC) in 2001, Amancio Ortega has paid more than 9 billion euros from the group as of 2018.

As the world's seventh richest in the Forbes real time rich list, Amancio Ortega has invested in property through holding company Pontegadea Inversiones SL, and the United States is the company's largest investment market.

The CEO nomination of Carlos Crespo will be voted on at the annual general meeting of shareholders in July.

Inditex SA Indian group also announced that the board will add a new Carlos Crespo and another independent director to 11 people.

Author: Lin Biying