By John Smith • 17 December 2020 • 17:52
AS companies around the world succumb to the downturn in business caused by the international pandemic, one Spanish giant shines as a beacon of how to not just cope but adjust to the change in the market and benefit.
Inditex has just released its third quarter figures and whilst sales have dropped from the previous year, it has taken action to not only increase its online business but also to reduce costs.
It recorded a net profit of €866 million in the third quarter which taking into account losses from the lockdown still sees its nine-month position as having an overall net profit of €671 million but equally importantly it has more cash than ever before.
The current cash in hand amounts to €8.3 billion which means that whatever may come along in 2021, it will have enough money to weather any storm no matter how harsh it may be.
Should Covid-19 be controlled successfully with the introduction of the newly developed vaccines then Inditex may well consider acquisitions of brand names that are either suffering or have gone to the wall or introducing new ranges itself.
Despite the fact that 21 per cent of the Groups shops remain closed, it still has plans to expand into new countries such as Panama and Puerto Rico after earlier expansion in Chile, Costa Rica, Honduras and Tunisia.
For Spain and Portugal as well as other mature markets it has launched its latest brand Lefties which is aimed at all types of people of all ages and sexes with clothing and a selection of footwear.
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Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica.
Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene.
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