record of sales, benefits and cash in the first half of 2019


Inditex achieves results that it has not seen since 2017. They advance the integration of off and online sales, and their measures in favor of sustainability

12.09.2019.- Group sales Inditex -According to the data distributed by the company, which we summarize here- grew 7% in the first six months, with maximum income, profit and cash. Sales in comparable stores rose 5% in the first half, being positive in all chains and in all geographic areas, both in store and online.

Sales reached 12,820 million euros for the first time, with a 7% growth. Net profit broke its historic ceiling and stood at 1,549 million euros, 10% more than the previous year. The net financial position grew by 13% to 6,730 million, the highest recorded to date.

Net profit reached 1,549 million euros, exceeding 10,40 million euros in the first half of 2018 by 10%. All figures reflect the impact of IFRS 16, an international standard that affects lease accounting .

During the presentation of results, Pablo Isla, president of the group, highlighted the strong operational performance implied by these figures and stressed the importance of the investments made, both in store and in logistics and technology, which are a key element in the development of our integrated store and online platform at the service of the customer.

For the entire year 2019, the group management expects a comparable sales growth of between 4% and 6%. At the moment, store and online sales at a constant exchange rate between August 1 and September 8 have grown by 8%.

Pull & Bear store in Shanghai

Semester key: synergies between stores and online

For Inditex the fundamental axis of its growth is the sum of new commercial area and online growth. The stores incorporate technological tools to facilitate integration with the digital world and with the Internet offer. While the company has continued to open, expand or renovate its store, the online platform has continued to grow steadily.

During the first half of 2019 presented its offer in Brazil, UAE, Lebanon, Saudi Arabia, Egypt, Morocco, Indonesia, Serbia and Israel. In August, it opened Zara online stores in Qatar, Kuwait, Jordan, Bahrain and Oman. The openings of South Africa, Ukraine, Colombia and the Philippines are also scheduled.

In total, at the end of the semester the group had 7,420 stores in 96 markets, in 62 of which it also has an online offer. Zara, Zara Home, Massimo Dutti, Pull & Bear, Stradivarius, Oysho and Uterqüe online stores reach an additional 106 markets.

The implementation of RFID remains key to provide customers with a unique and integrated experience. This radio frequency identification system is already incorporated in Zara, Massimo Dutti and Uterqüe and will be applied to the other formats in 2020. Next year, therefore, the integration of the stock of each of the stores with that of the stockrooms will be completed. online, which are currently 33 worldwide.

This digital investment plan is completed with the improvement and modernization of facilities and logistics centers. In Galicia, a new audiovisual production building is being built in Arteixo, and the work to complete the technological capacity and data processing in A Laracha continues at a good pace. In Lelystad (Netherlands), its Logistic Connection Point is about to be launched.

Zara's Activity: See Now, Buy Now

All formats of the group have made openings and have reformed or expanded more than 100 stores during the semester in 31 markets.

The brands have been very active in their contact initiatives with their customers, for example with parades that incorporate the concept See Now Buy Now. They have made first-class creative collaborations and opened new stores. This is the case of Zara in Hudson Yards (New York United), Cannes, Dajeon (Korea), etc.

Zara store on Preciados street in Madrid

Zara has reopened its Preciados store (Madrid) on September 12. Its 6 floors exceed 4,000 square meters, in which Zara displays its latest image and the latest technologies to boost the experience of each client. Also recently, Zara launched the third capsule of its collection Zara SRPLS, while Zara Edited continued its journey, with personalized denim garments.

Zara launched several initiatives that link with the group's sustainability goals: the denim clothing collection TRFXJoin Life, with recycled garments. Like its remaining brands, it continues the deployment of its garment collection program, which becomes new units.

Along the same lines, last week Zara launched the capsule collection Join Life Care for Water, made with organic cotton.

Activity of the remaining brands

Massimo Dutti He relied on photographer Mikael Jansson and art director Franck Durand to portray his proposal for the new season.

In Bershka, the artist Nathy Peluso led the second concert On Stage in the Portal del Ángel store in Barcelona.

Pull & Bear He arrived in Luxembourg, opened a store in Cannes and continued to collaborate with Rosalia, with a new line based on the imaginary Street Of the singer.

Stradivarius opened its first store in Ghent its first Oysho Yoga Belgian shop During the spring, he starred in the fifth edition of his Summer Expedition on the Mexican Pacific coast.

After entering Luxembourg, Oysho renewed its proposal in Madrid and launched the collection Oysho Portraits.

Uterqüe, in turn, collaborated with Bobbi Brown in a high-quality cosmetic bag that contains the five best-selling Estèe Lauder products.

Zara store in Mumbai (India)

Sustainability: Join Life

During the first semester, Inditex brands sold 136 million garments with the label of maximum sustainability Join life, as many as those sold throughout 2018, in line with the sustainability commitments announced by its president at the last General Meeting of Shareholders. In this regard, Isla noted that The strong operational performance of the company and the decisive boost to sustainability throughout our value chain are clearly complementary aspects.

In 2019, 20% of Zara's garments will be Join life, and in 2020 will reach 25% of sales. On the other hand, in 2020 the elimination of plastic bags in all chains will be completed, which is already a reality in Zara, Zara Home, Massimo Dutti and Uterqüe.

Also at the end of this year all Inditex platforms, stores and offices will have their registered eco-efficiency. Also, starting this September, the home garment collection service, which is already implemented in Spain and China, will arrive in Paris, London and New York.

Zara will culminate in 2019 the full sustainability of your stores. The rest of the formats will be done in 2020, thanks to the process of optimization of the commercial space and digital transformation of the group.

Sustainability: goodbye to plastic and more garment recycling

According to Inditex's plans regarding sustainability, in 2023 it will completely eliminate single-use plastics that reach the customer. Its headquarters, logistics centers and stores will not dispose of any waste, since everything will be recycled or reused.

Among the objectives announced at the last General Meeting of Shareholders, it is worth noting that before 2025, 100% of the cotton, linen and polyester used in the group's garments will be organic, more sustainable or recycled. These three materials represent, together with viscose, 90% of the raw material acquired by the Group. In addition, by that same date, 80% of the energy consumed by the group will come from renewable sources.

Inditex and Comillas Pontifical University have renewed the Chair of Refugees and Forced Migrants, which since 2016 is dedicated to the study and research on people who are forced to flee their homes.

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