Inditex has presented its results for the first half of the fiscal year (1 February – 31 July 2018). The company obtained a net profit of 1.409 billion euros, which means an increase of 3% compared to the 1.366 billion euros in the same period last year.
Morgan Stanley | For the first time since its flotation (17 years ago), we put the recommendation as Sell (underweight) with an Objective Price which falls from 26 to 21 Euros.
World’s biggest clothing retailer Inditex reported improved profitability (+2%) for the first three months of its financial year despite negative currency effects.
Inditex has opened its first store in the world with an integrated online section in Stratford (London). Apart from the traditional clothing lines for men, women and children, the store also has an online section with computerised collection points for goods.
Ana Fuentes/Carlos Díaz Güell | “We were a very poor country which in the last 40 years has made a spectacular transformation. Today there are over 150,000 companies which export regularly and have exported at least in the last three years”, explains Carlos Espinosa de los Monteros, High Commissioner for the Spain Brand (Marca España), and privileged observer of the economic reality in Spain and how its business class has evolved over the last few decades.
Inditex founder, Amancio Ortega, is still the person with the largest fortune in Spain, with 70 billion euros, followed by his daughter Sandra Ortega and and Mercadona chairman, Juan Roig. The three business people top the list of the 100 biggest national fortunes drawn up by Forbes.
Spanish retailer Inditex is the largest in Europe, more than twice the size of the number 2. Kering. With over 7,000 stores and 150,000 employees globally, it continues to outpace its rivals mainly due to its flexible business model.
Nobody has been able to explain, in any credible and understandable way, the reasons for Inditex’s sharp stock market decline, precisely in a year when it’s beating records in terms of sales and profits.
Ailing department store chain El Corte Ingles lived splendidly before Amancio Ortega, Zara’s founder, began his rapid journey through the world of fashion retailing both at home and abroad. Galicia’s Inditex group has not stopped growing in sales and store openings.
The Green party lawmakers in the European parliament have accused the world’s biggest clothing retailer Inditex of avoiding paying at least 585 million euros in taxes between 2011 and 2014. According its report ‘Tax Shopping: Exploring Zara’s Tax Avoidance Business’, the fact that Inditex diverted bonus payments to the Netherlands has cost Spain some 218 million euros in uncollected tax revenues, Germany 25 million, Italy 57 million and France 78 million, amongst others.