Inditex Case Study
“ INDITEX GROUP – ARE ITS “FAST FASHION” RESULTS SPEEDING UP AGAIN AFTER RECENT SLOW DOWNS ? ”
This case study has been written exclusively for use on the course Strategic Financial Management FINA 1035 at Greenwich University Business School and its partner institutions. It is to be used exclusively for this purpose. No part may be copied , emailed or reproduced for any other purpose other than stated above. Much of the data and material included in the case study is taken from the annual reports and accounts of the Inditex Group, its public statements and from its website .inditex.com. All other sources are shown in the case study. Author : Scott Duncan Lecturer Greenwich University Business School July 2010
INDITEX GROUP – ARE ITS “FAST FASHION” RESULTS SPEEDING UP AGAIN AFTER RECENT SLOW DOWNS ? Intr oduction
Inditex Group - the owner of the Zara fashion chain and the world’s largest clothing and apparel group in terms of sales - reported encouraging results for its first quarter of 2010. The Financial Times reported in June 2010 1) : “Inditex lent its weight to hopes of a recovery in European demand as the continent’s biggest fashion chain delivered forecast-beating first-quarter net profits and confirmed it would be moving its fast-fashion offer online later this year. Europe’s biggest clothing chain reported a 14 per cent increase in net sales to €2.66bn ($3.2bn) in the three months to the end of April 2010, as net income rose 63 per cent to €301m in response to, in particular, demand for its sharp-shouldered jackets and draped harem trousers. Sales rose 13 per cent from the beginning of February to June. The uptick comes after Hennes & Mauritz in April raised hopes of recovery in the European retail sector when it also beat net profit expectations in its first-quarter results and reported signs of improvement in the market at the start of the second quarter. Inditex has been upbeat on prospects for the current year, with Pablo Isla, chief executive,
This case study has been written exclusively for use on the course Strategic Financial Management FINA 1035 at Greenwich University Business School and its partner institutions. It is to be used exclusively for this purpose. No part may be copied , emailed or reproduced for any other purpose other than stated above. Much of the data and material included in the case study is taken from the annual reports and accounts of the Inditex Group, its public statements and from its website .inditex.com. All other sources are shown in the case study. Author : Scott Duncan Lecturer Greenwich University Business School July 2010
INDITEX GROUP – ARE ITS “FAST FASHION” RESULTS SPEEDING UP AGAIN AFTER RECENT SLOW DOWNS ? Intr oduction
Inditex Group - the owner of the Zara fashion chain and the world’s largest clothing and apparel group in terms of sales - reported encouraging results for its first quarter of 2010. The Financial Times reported in June 2010 1) : “Inditex lent its weight to hopes of a recovery in European demand as the continent’s biggest fashion chain delivered forecast-beating first-quarter net profits and confirmed it would be moving its fast-fashion offer online later this year. Europe’s biggest clothing chain reported a 14 per cent increase in net sales to €2.66bn ($3.2bn) in the three months to the end of April 2010, as net income rose 63 per cent to €301m in response to, in particular, demand for its sharp-shouldered jackets and draped harem trousers. Sales rose 13 per cent from the beginning of February to June. The uptick comes after Hennes & Mauritz in April raised hopes of recovery in the European retail sector when it also beat net profit expectations in its first-quarter results and reported signs of improvement in the market at the start of the second quarter. Inditex has been upbeat on prospects for the current year, with Pablo Isla, chief executive,