Inditexthe fashion distribution group, has approached the pre-pandemic figures. The company has published results of this 2021 where you see a sales increase, bordering on 36% reaching 27,716 million euros. In this way, you have registered a net profit of 3,243 million euroswhich means that they have had a 193% increase.
“After two years of the pandemic, these results demonstrate the great capacity to adapt to any circumstance that characterizes the people who make up this Company through commitment and talent”, it states Pablo Isla, president of Inditex in a statement.
Inditex, a quick recovery with good results, especially in the online channel
The company has had its ups and downs but has always remained stable and down to earth. It should be noted that, despite the crisis experienced by Covid-19, Inditex has managed to obtain very good results in every way.
The Online sales have reached 7,491 million euros, 77% more than in 2020. Therefore, online income have reached 25.5% of the total sales of the Group and, they expect them to account for 30% of the total in 2024. These Significant online investments have been crucial to the retailer’s success. It should be noted that one of the reasons for this increase in sales in the online channel is its launch of ‘store mode’ on its platform in July 2021. This feature offers the ability to bridge the gap between its physical and online stores by providing real-time store stock levels and geolocation to enable shoppers to find specific items in stories.
Another positive aspect of the company’s results has been the gross marginwhich increased 123 points compared to 2020. This This figure is the highest the company has obtained for six years. The gross operating profitwhat is known as ebitda, has also increased. It has stood at 7,189 million euros, 58% more than the previous year. The same has happened with the funds generated during the periodwhich have also reached a all-time high: the financial position grew by 24%.
The bad part of the results
It is true that the company has obtained very good results. However, not everything is rosy, every good part has its bad part. At first trimester As of 2021, 24% of business hours were unavailable due to health restrictions.
The second and third trimester, despite having obtained its historical maximum in sales, Inditex had 11% fewer stores available. While in the fourth trimesterthe arrival of the ómicron variant led to slow growth and the temporary closure of several establishments located in Austria, the Netherlands, Germany, Japan, China and the Philippines. “Store sales were logically affected. The impact in the fourth quarter was 400 million euros”, the company states in the same.
These data began to recover with the disappearance of this variant. However, now with war conflict in Ukrainethe company has been seen in the obligation to close stores in this country to ensure the safety of its workforce. Despite this, the sale in store and online between February 1 and March 13 grew to 33% compared to the same period in 2021 and 21% compared to the pre-covid all-time highs of 2019. “This suggests that the conflict will have a material impact on their total revenue this year. It may also create tension beyond these two countries, as rising commodity prices could affect the cost of textiles, contributing to increased inflationary pressures for consumers.”it states Pippa Stephens, GlobalData Apparel Analyst.
