Inditex owns brands including Zara
(Picture: REUTERS)The parent company of Zara has posted bumper results for the 12 months just gone, overcoming disruption from Omicron as it bounced back from store closures.
Spain’s Inditex, which also owns brands like Pull&Bear and Massimo Dutti, said revenues jumped 35.8% to €27.72 billion (£23.3 billion) for the year to January 31.
Executive chairman Pablo Isla said: “After two years of the pandemic, this set of results demonstrates the incredible ability to adapt to any circumstances, which characterises the people who work here, borne from their commitment and talent.”
Inditex said sales tapered off at the start of the fourth quarter of the financial year as Omicron cases rose across the globe. The impact was an estimated €400 million (£336.7 million) over the three months to the end of January.
However, sales have recovered following the easing of restrictions in many territories at the end of that month.
Store and online sales between February 1 and March 13 jumped by 33% year-on-year to reach a level 21% above pre-Covid figures from 2019, the company said. That was despite rising concerns about the cost of living worldwide and the onset of war in Ukraine, which has shaken consumer confidence.
Online sales continued to boom last year, growing to more than a quarter of total trade even as stores reopened. Revenue from online reached €7.5 billion (£6.3 billion), accounting for 25.5% of total sales.
Inditex CEO Óscar García Maceira said the success of the company’s digital transformation placed it in “an unrivalled position” to offer an “exceptional level of engagement with [the company’s] quality and sustainable fashions”.
The retailer has closed its 502 stores in Russia, as well as suspending online sales in the country, as a result of the invasion of Ukraine earlier this month.
Russia and Ukraine accounted for 5% of its sales growth in the period from the start of February.
Laura Hoy at Hargreaves Lansdown said: “While this will slow progress somewhat, the group should be able to take this knock to sales in its stride as growth in other markets together with improved profitability will paper over the hole for now.
“Inflation is another headwind worth watching, but so far management says it’s firmly under control. Price increases are offsetting the uptick in input costs and it’s not expected to have an impact on volumes.”
