Inditex net sales rise 3%, 7% in local currencies, topping €26 billion for the first time

The chairman and CEO of Inditex, Pablo Isla, noted “our investments in both logistics and stores in order to leverage the integrated platform, as well as our continued focus on prime locations, has enabled Inditex to offer customers a consistent and appealing proposition globally, across all our brands and channels”.

Highlights

• Revenue from online sales increased by 27% to €3.2 billion, accounting for 14% of sales in markets with stores and onlineNet profit rose 2% to €3.44 billion, or 12% in local currencies, while EBITDA and EBIT reached all-time highs, supported by strong margins.
• Net profit rose 2% to €3.44 billion, or 12% in local currencies, while EBITDA and EBIT reached all-time highs, supported by strong margins.
• The Board of Directors will propose a new dividend policy at the next AGM, to be held in July. The ordinary dividend will increase to represent a payout ratio of 60% – up from 50% at present – and Inditex will also distribute a bonus dividend totalling €1 per share, split across 2019, 2020 and 2021.
• The change in policy translates to a 17% increase in the dividend for the year to €0.88 per share; €0.66 as an ordinary dividend and €0.22 as a bonus dividend.
• The Extraordinary Profit-Sharing Plan reaches a combined €32 million this year. €7 million of this will be due to their contribution to reported earnings growth while there will also be a €25 million top-up from the company. In total, Inditex will pay its employees €619 million of variable compensation.
• The Group’s store space increased by 5%, with openings in 56 markets, as it continued to update its store network with a focus on prime locations and the latest technology to provide an integrated store and online fashion platform to customers.
• Zara increased its presence to 202 markets, while Massimo Dutti and Uterqüe have just expended their online platforms to 106 new markets, boosting their reach to 184 and 148 markets, respectively.
• In FY18, Inditex’s capital expenditure amounted to over €1.6 billionto complete the rollout of RFID technology across all brands and expand the integrated stock management system, among others. This system is central to providing customers with the best shopping experience.
• The Group’s overall worldwide tax contribution amounted to €6.16 billion in FY18, of which €1.7 billion was in Spain.