ARTEIXO – Spanish fast fashion giant Inditex more than doubled its full-year net profit in fiscal 2021, with sales surpassing pre-pandemic levels. Revenue from online sales were particularly strong, hitting €7.5bn and accounting for 25.5 per cent of total sales.
The group, which owns Zara, Massimo Dutti and Pull & Bear, reported net income of €3.2bn in the year to January 31, an increase of 193 per cent compared to the prior year.
Net sales reached €27.7bn, up 37 per cent in constant currency compared to 2020, and up 3 per cent compared to pre-Covid 2019 levels.
Inditex’s executive chairman Pablo Isla said “after two years of the pandemic, this set of results demonstrates the incredible ability to adapt to any circumstances which characterises the people who work here, borne from their commitment and talent.”
The group’s CEO, Óscar García Maceiras, singled out “the leadership demonstrated by the company in regard to its digital transformation all these years places us in an unrivalled position to offer an exceptional level of engagement with our quality and sustainable fashions.”
Inditex recovered well from the pandemic during the year, but the fourth quarter was impacted significantly by the spread of the Omnicron variant, and the restrictions in most markets including Austria, The Netherlands, Germany, Japan, China and the Philippines.
Inditex said this sudden drop in store sales generated a one-off impact of €400m in the fourth quarter.
Earlier this month, Inditex announced it would be closing all 502 of its stores in Russia following the country’s invasion of Ukraine.