Inditex (Zara) wins 2.438 million euros in the first nine months, 4.1% másInditex, BBVA, and Repsol, the companies best able to attract talentoInditex ahead of the future the boom of e-commerce
The president of Inditex, Pablo Isla , defended on Wednesday the group, owner of brands such as Zara, has decided to ahead of the strategy of promotion constant which has entered the textile trade to try to trace the sales, what, in your case, has allowed them to improve their margins. “We strongly believe in our business model and in our way of running it. We believe in the quality of our products and we have chosen to protect what we believe in, and do not enter in the very significant promotional activity that we have seen in the sector”, has defended Island during the presentation of the accounts of the group told analysts.
According to the executive, this decision, coupled with other factors, such as the strict control of expenses , has enabled the group to raise a “very healthy” your gross margin in a few months, marked by volatility arising from external factors, such as, for example, the depreciation of some currencies or the fall of the sales by some adverse weather conditions.
What would have happened if they had done promotions?, you have asked a analyst, to which Island he has answered that he preferred not to enter into speculations and that they believe that they took the “right decision”.
During the presentation, the executive has argued that you continue to see great growth opportunities at a global level for the company, which will continue to develop its platform for selling integrated physical and online.
Inditex won 2.438 million euros in the first nine months of its fiscal year (February to October), 4.1% higher than a year earlier, while its sales rebounded to 2, % and totaled 18.437 million, weighed down by the effect of currency.
Although in absolute terms the benefit and the billing marked records, in relative figures (comparative year-on-year), the evolution of the net result was the worst for the period from 2014 (when in nine months climbed 0.7 per cent) and the billing recorded the lowest increase since a publicly traded company and publishes accounts (2001).
however, the Island has underlined that the gross margin-the difference between the price without VAT of a product and its cost of production and, therefore, measures the benefit obtained by a company by him-stood at 58%, 56 basis points more than a year before. Only in the third quarter, rose 108 basis points.
