While the clothing sector in France is going through an unprecedented crisis, with the closures of Camaïeu and San Marina or the receiverships of Kookaï, Go Sport and André, in Spain, the Inditex group, parent company of Zara, has announced, Wednesday, March 15, exceptional results, which pulverized all its records. Between 1er February 2022 and on January 31, 2023, the sales of the world fashion leader, which owns, in addition to Zara, Pull and Bear, Bershka, Stradivarius, Massimo Dutti or Oysho, amounted to 32.57 billion euros. An increase of 17.5% compared to 2021. With 4.13 billion euros in net profits, the Spanish giant not only saw its results jump by 27% compared to 2021, but it greatly exceeded those of 2019, before the Covid-19 pandemic (+13.5%).
Spearheads of the group, Zara and Zara Home represent 70% of the group’s total sales and 74% of net profit. With nearly 23.8 billion euros in turnover (+21%), the ready-to-wear brand alone achieves almost as much as the turnover posted in 2022 by the whole of the French clothing sector (26.2 billion euros, according to figures from the French Fashion Institute).
The year 2022, which saw Marta Ortega, the daughter of Amancio Ortega, the founder of the group (created in 1985, but whose origins date back to 1963 in Galicia), take the reins of the company, however promised to be complicated . Very present in Russia, its second largest market behind Spain, Inditex took the decision to close all of its 514 stores there at the start of the war, before selling them in October to the Lebanese group Daher. In Ukraine, its 81 stores are still closed.
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Market diversity, the key to success
The losses caused on these two markets were compensated by the increase in sales “in all geographical areas, both in physical stores and in e-commerce, and in all brands”, explained the general manager, Oscar Garcia Maceiras. The United States has thus replaced Russia as the second country in terms of sales, behind Spain which represents 14% of turnover.
Market diversity is one of the keys to Inditex’s success, with 47% of its turnover coming from the rest of Europe and 20% from America. It adapts its strategy there, according to the specificities and maturity of each country. The Uterqüe sign was closed, and Stradivarius, Pull and Bear and Bershka left China in 2022. Conversely, in 2023, the first Oysho stores will open in the United Kingdom and Stradivarius will appear on the German market. The second-hand Zara clothing sales platform, Zara Pre-Owned, inaugurated in the United Kingdom in 2022 will arrive in France and Germany this year.
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