Best of a bad bunch

14 March 2018 By Carol Ryan

Zara’s owner plans to open less new space as purchases shift online, and overall sales growth slowed in its fourth quarter. But web-based sales are strong, and peers are struggling more. It’s trendy to be down on retailers, yet Inditex merits its valuation lead.

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Spanish fashion retailer Inditex said on March 14 that it made sales of 25.3 billion euros in the 12 months to Jan. 31, a 10 percent increase year-on-year stripping out the effect of exchange rates.

The owner of the Zara chain disclosed its online sales for the first time. Web transactions increased by 41 percent year-on-year and now represent 10 percent of the group’s total.

The retailer plans to open less new selling space after the current 2018 financial year, lowering its guidance to 4 to 6 percent annually down from 6 to 8 percent previously.

Inditex’s shares were down 4.6 percent to 23.2 euros by 0830 on March 14.

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