The Inditex Group's stores and online sales in local currencies rose by 11% in the first half of fiscal 2014 - between 1 February and 31 July - while like-for-like sales growth was 4.5%. Reported revenue, shaped by exchange rate trends, amounted to €8,085 million, year-on-year increase of 6%, with growth in all of the Group's geographic markets. Net profit amounted to €928 million, compared to €951 million in the first half of FY13.

The Group continued to generate employment, creating over 8,000 new jobs in the last 12 months, 1,200 of which were in Spain. This is as a result of its investment policy regarding the expansion of its corporate facilities, among other reasons.

Key figures (first half 2014)

(€ millions)

1H2014

1H2013

Net sales

8,085

7,655

Gross Profit

Gross margin

4,658

57.6%

4,486

58.6%

EBITDA

1,617

1,624

EBIT

1,194

1,219

Net Income

928

951

Sales breakdown by region

1H2014

1H2013

Europe

45.6%

44.6%

Asia

21.7%

21.7%

Spain

19.3%

19.3%

Americas

13.4%

14.4%

Total

100%

100%

6,460 stores in 88 markets

The Group continues to deliver its international expansion targets across all its geographic markets as part of its multi-concept, multi-channel strategy. At the end of the first half of FY14, the Group had a network of 6,460 stores in 88 markets, with 120 net openings in 40 different markets.

During the period, all of Inditex's fashion concepts opened flagship stores. Zara continued to rollout its new store image to include more spacious premises, clean cut architectural lines and advanced environmental measures. Particular highlights include openings such as Hong Kong's Queen's Road, Madrid's Calle Serrano, Zurich's Bahnhofstrasse, Krakow's Rynek and Miami's Lincoln Road. 

Major new Pull&Bear stores were opened in Jakarta, Marseille, Istanbul, Venice and Paris, with flagship stores such as on Kalverstraat (in Amsterdam) and Corso Vittorio Emanuele (in Milan) standing out. Massimo Dutti also continued to update its image, opening high-spec, designer stores with environmental measures in cities such as Beijing, Toronto, Budapest, Palma de Mallorca and Amsterdam. In September, Massimo Dutti opened a flagship store of more than 1,500m2 on Madrid's fashionable Calle Serrano. 

Zara Home, meanwhile, opened important stores in cities such as London (Kensington High Street), Athens (Glyfada), Tokyo and Rio de Janeiro in Brazil, a market in which the chain is expanding rapidly.

Stradivarius and Bershka's notable openings were located in Nagoya, Saint Petersburg, Istanbul, Marseille and Jakarta, among other cities. Meanwhile, Stradivarius opened in August its first UK store specifically in Westfield Stratford City shopping centre in London. Moreover, Uterqüe continues to upgrade its store image, configuring elegant establishments dominated by marble, wood and painted metal which combine to create a boutique feel for customers.

Expansion of the online platforms

At the end of the first half, the Group was operating online stores in 25 markets and Mexico was added on 3 September. In addition to 21 European markets, the Group sells online in China, Japan, the US, Canada and, now, Mexico. In the weeks to come, Zara's online platform is due to go live in South Korea, and it will expand its online offering in China with the opening of its virtual shopfront on Tmall. The remaining fashion concepts of the Group will also soon launch online in Mexico.

Year-to-date trading update

Stores and online sales increased by 10% in local currencies between 1 August and 12 September 2014.

As ratified at the Annual General Meeting held on 15 July, the Company will pay a final ordinary dividend and a bonus dividend totalling €0.242 per share before tax on 3 November 2014, bringing the total dividend paid from 2013 profits to €0.484 per share.

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