There is an increase in profits in the past 5 years ;
Spain is totally affected by the crisis but Inditex is number one in the sector of fashion with 8,1 billions € of sales from the beginning of the year (2014).
And the almost nonexistence of debt since the creation of the group shows that
Inditex group is a strong company that is right with its longterm strategy. MidSeptember 2014, it was noticed a decrease in the benefits of 2,4% for the first time in 5 years. But it is not very important and significant as the sales increased of
6%. Furthemore, this slight drop is due to a strong euro and the numerous investments of the company.
For example :
Since January, Inditex has opened 120 stores in 40 countries ;
The groups has also developed the online stores for Mexico and South
Corea ;
The previous investments led to the creation of 8, 000 employments, including 1,200 in Spain. Inditex resists to the crisis thanks to its policy of internationalization (opening of 500 stores around the world every year, and Asia represents today 22% of the activity) and to his reactivity. Inditex is known for its fast fashion (fast in the production, fast in the creation of new collection). Inditex share price was multiplied by 2.5 in 5 years, knowing that Spain was in recession during this period. CEO Pablo Isla says the gross profit margin of Inditex will be stable in the second semester. In conclusion, investors should hold and/or buy shares of stock as the financial situation of Inditex group is great and shows that the company is higly profitable (even with this little drop in the profits in the firs semester of 2014.
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