Zara Owner Inditex Reports Increase in Profits, Thanks to Rapid Digital Growth

Full-year profit at Inditex SA climbed 7 percent to 3.37 billion euros ($4.17 billion) on the back of sales gains and growth across all geographies and all formats, the Spanish retail giant said on Wednesday.

The owner of chains including Zara, Bershka, Pull & Bear and Massimo Dutti said sales rose 9 percent to 25.34 billion euros in the fiscal year ended Jan. 31, while earnings before interest, tax, depreciation and amortization were up 4 percent to 5.3 billion euros.

Since the close of the financial year, store sales in local currencies rose 9 percent between Feb. 1 and March 11, it said.

Pablo Isla, chairman and CEO of Inditex, described 2017 as a year of “solid growth” and flagged “the unique strength of our integrated stores and online model and its significant growth potential.”

“The prescient investments made in technology and logistics in recent years, coupled with space optimization, mean the company is well-placed for continued growth across all its markets,” he added.

Inditex said 42 million euros is to be distributed to its employees, in addition to 562 million euros in bonuses and commissions.

Inditex also announced two new appointments. Carlos Crespo, formerly the group’s internal audit director, has been appointed chief operating officer, in charge of the coordination of the IT, logistics and transport, works, procurement and sustainability departments. He will report directly to Isla and will focus primarily on the digital transformation of the company and reinforcing the group’s integrated store and online business model.

Paula Mouzo, previously internal audit deputy director, will succeed Crespo as internal audit director.

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