Inditex to invest €290 million in Spain

MADRID | The Inditex Group reported Wednesday net sales in the first quarter of 2012 February to April of €3.4 billion, 15% higher year-on-year (14% in local currencies). Net income amounted to €432 million, 30% more than in the first quarter of 2011. The Spanish company said it had opened 91 new stores during the quarter, bringing the total store base to 5,618. The new stores were opened in 26 markets.

In a press release, Inditex announced its initial investment plans for the domestic market in Spain. During the first quarter,

“Inditex redoubled its commitment to investing in Spain with the commencement of construction work on the expansion of the Group’s headquarters in Arteixo (Galicia). The new extension will add 70,000m2 to the existing 90,000m2 which house the Group’s shared corporate services and the sales, creative and design tea

ms of Zara and Zara Home. The extension, which will entail an investment of €100 million, will generate around 400 new jobs

“Elsewhere, the state-of-the-art logistics platform being built by the Group in Tordera (Catalonia) to accommodate Massimo Dutti’s operations will begin to operate in September. The Group will invest a total of €190 million in the Tordera expansion, generating around 500 jobs.

Also, Zara plans to launch its online store in Mainland China in September, adding to its current online shop that serves 16 European countries, the US and Japan.

And this is the evolution of its stock price while the Spanish stock index goes in almost exactly the other direction.

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About the Author

Victor Jimenez
London contributor at thecorner.eu, reporting about the City and the Eurozone economies. He regularly writes for Spanish newspaper group Prensa Ibérica--some of his features include shared work with journalists of The Daily Telegraph and the BBC.