By Linda Hall • 15 March 2023 • 11:30
WORLDWIDE EMPIRE: Zara store in Battersea
Photo credit: Inditex
The fashion empire, which was founded by her father Amancio Ortega, owns the Zara, Massimo Dutti, Bershka and Oysho brands and reported a net profit of €4.1 billion over its last fiscal year, a 27 per cent increase on 2021.
Even after a 5 per cent price increase introduced last year to offset rising costs, in-store and online turnover grew by 17.5 per cent to €32.6 billion, the company announced .
These results arrived at the end of a year of change, following the departure last April of Pablo Isla who took over from Amancio Ortega as Inditex president in 2011 . His place was taken by non-executive president Marta Ortega and Oscar Garcia Maceiras, the company’s CEO.
Despite higher overheads, the company’s exit from Russia and China’s continuing Covid restrictions, last year was the best in the company’s history, easily overtaking Inditex’s €3.6 billion profits and €28.3 billion turnover in pre-pandemic 2019.
Inditex nevertheless surprised investors with a hike in capital expenditure from €1.1 billion in 2021 to last year’s €1.6 billion, higher than the market had foreseen and responsible for a 3 per cent fall in shares.
“It is the right thing, to keep on investing for future growth,” Maceiras insisted.
Zara brand led the group with a pre-tax 38.5 per cent compared with the previous year, although the pre-tax profit fell at Oysho and Massimo Dutti, by a respective 12 and 10 per cent.
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Originally from the UK, Linda is based in Valenca and is a reporter for The Euro Weekly News covering local news. Got a news story you want to share?
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