Inditex has published results for its first fiscal quarter (February-April), reflecting as expected the strong impact of the coronavirus: historical losses of €409 million, positive EBITDA although 78% lower than in Q1’19, and a 44% drop in revenues. Nevertheless, the company confirmed the payment of a dividend against 2019 results of 0.35 euros/share, 60% less than a year earlier.
Inditex has decided to postpone its temporary layoffs’ plan, which was expected to start on 15 April. For the time being, it will continue paying the salaries of its workers in Spain. After the state of alarm was decreed on 14 March and just after presenting its results, Inditex already flagged that it was going to cover the cost of all its staff in Spain. At the same time, it conditioned the temporary layoffs for its 25,000 store employees to the extension of the decree beyond 15 April, a measure which is now ruled out.