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Inditex Financial and Strategic Analysis

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Inditex Financial and Strategic Analysis
INDITEX GROUP
Inditex is a fashion retrailer company maded up of more than 100 companies working in the fashion and manufacturing market.
Some of the most famous brands that it includes are : Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe.
The company has 5.618 stores in 84 markets all over the world. The chairman of Inditex, Amancio Ortega Gaona, started working as a designer from late 70’s. The first Zara’s store was opened in 1975, ten years later Inditex was founded as an holding company.
From 1996 Inditex started acquiring other companies which are included in the group nowadays.

Financial strategy for 2010
Inditex identified its financial strategic as multiformat global growth and it followed this strategy succefully.
Infact in 2010 the group opened new stores in three new countries : India, Bulgaria and Kazakhstan.
That leaded to increase the number of markets from 74 (2009) to 77 (2010).
Totally Inditex opened 437 new stores all over the world, showing a 10% increase in number of shops compared to the previous year.
Inditex has its strongest market in Europe with about the 73% of sales, it also has income from Asia (15% of sales) and America (12% of sales).

Shareholders structure
According to the annual report 2010, Inditex has 63,611 shareholders in total, out of whom more than 80% is represented by individual investors.
However individuals own only the 3,63% of the shares.
The remaining part of shares are owned by GARTLER SL (50,01%), PARTLER 2006 SL (9,28%), and other institutional investors (37,08%) for a total number of shares of 623,330,400.
From this information it can be seen that institutional investors play the main role in making the strategic decisions regarding the company and maintaining the

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