Spanish fashion company Inditex‘ 2015 profit grew a lot, despite the fact that its net profit did not meet analysts’ forecasts. Turnover also grew 15 %.
Expansion
Inditex, which owns chains like Zara and Pull & Bear, had a 20.9 billion euro turnover in 2015, up 15 % compared to last year. Like-for-like turnover growth was 8.5 %, while it was only 5 % in 2014.
The company’s turnover grew a lot in 2015 because it lowered store prices. The less expensive items dropped 36 % of their value in the United Kingdom over the past 18 months.
That higher turnover also helped boost net profit 15 % to 2.88 billion euro, which is still below analysts’ expectations (at 2.9 billion euro).
The Spanish company believes turnover growth will continue in 2016, thanks to its planned expansion. Over the course of 2016, Inditex intends to invest 1.5 billion euro into its store network expansion. That should result in 400 to 460 new stores, including in new markets like Vietnam, New Zealand and Nicaragua. All of its brands should also be available online in Europe and Turkey by the end of the year.
