Inditex FY15 net sales and profit jump 15 percent

Inditex Group’s net sales increased by 15.4 percent in FY15 from February 1, 2015 to January 31, 2016 to 20.90 billion euros (22.92 billion dollar), underpinned by growth in all of the group's geographic regions. Sales growth in local currencies reached 15 percent. Net profit was 2.88 billion euros (3.15 billion dollars), up 15 percent from FY14. Meanwhile EBITDA registered growth of 15 percent and like-for-like sales growth was 8.5 percent, on top of 5 percent growth in FY14.

Commenting on Inditex’s earnings performance over FY2015, Group Chairman, Pablo Isla, said, “These figures demonstrate the Group's potential, boosted by the quality and the commitment of all of its employees”.

Expanded global footprint in FY15

Inditex opened a net 330 stores in 56 markets, ending the year with 7,013 stores in 88 countries across all continents. The Zara store opened in Honolulu, Hawaii, US, during the last quarter marked the Group's 7,000th store. The Group increased its store presence in all its geographies. Europe was home to 148 net new stores, Asia and rest of world to a net 114 and the Americas to a net 68.

By brand, Zara added a net 77 new stores to its network, bringing the total worldwide to 2,162. In 2015, it opened flagship stores in cities such as New Jersey, Las Vegas, Los Angeles, San Diego, Boston, Dallas, Chicago, Seattle and Puerto Rico in the US and added further stores in Manhattan (NY) with a flagship store in the Financial District (222 Broadway) as well as renovated store on Fifth Avenue and 42nd street. It continues to add to its retail base in New York in FY2016 with the opening of a global flagship store in Soho this month.

Also in FY2015, Zara opened or refurbished and enlarged stores in London's Oxford Street (UK), Avenue de la Toison d’Or in Brussels (Belgium), Paseo del Born in Palma de Malloca (Spain) and in other cities including Hamburg (Germany), Vienna (Austria), Copenhagen (Denmark) and Vladivostok (Russia).

Other brands of the Group also added to their footprint by opening new stores and undertaking refurbishments all over the world. Zara Home opened its debut stores in Switzerland, Australia and Chile; Pull&Bear opened flagship stores on Shanghai's East Nanjing Road (China), in Lausanne (Suiza) and on calle Hermosilla in Madrid (Spain).

Massimo Dutti opened its doors in Salzburg (Austria) and Los Angeles (US), as well as refurbishing its Parisian flagship store on Rue Royale in the La Madeleine district. Bershka opened a store in Seoul (South Korea) as well as its first establishment in Taipei (Taiwan). Stradivarius' openings spanned from Mexico City to China, where it extended its presence in the cities of Harbin and Chengdu. Oysho opened flagship stores on Paseo de Gracia (Barcelona, Spain) and Rua Garrett(Lisbon, Portugal). Meanwhile, Uterqüe inaugurated new stores in Russia and Mexico as well as revamping its store on Madrid's calle Serrano.

Inditex also expanded its online sales to Hong Kong, Taiwan, Macao and Australia. At year-end, the Group was selling online in 29 markets. The Group will continue to expand all of its brands' online reach in 2016. All of the Group's brands have launched online sales in Croatia, Slovakia and the Czech Republic and will launch in Bulgaria, Finland and Hungary. The Group will complete its online presence in all the European Union markets in April when its online sales platform goes live in Slovenia, Malta and the Baltic States. Meanwhile, the Group is planning to launch in five new markets with physical stores in 2016 including New Zealand, Vietnam, Nicaragua, Paraguay and Aruba.

Creates new jobs, announce profit sharing plan

In FY15, Inditex generated 15,800 new jobs, boosting its worldwide headcount from 137,054 a year earlier to 152,854. The pace of job creation in Spain – where 4,120 new jobs were created across stores, head offices and logistic platforms – was a particular highlight. These new opportunities emphasise the benefits of Inditex’s global growth.

“The investments carried out in head offices and logistics platforms, and in upgrading the company's technology have continued to translate into significant job creation and enabled Inditex to attract talent all over the world,” added Pablo Isla.

Under the umbrella of its ordinary remuneration policy, Inditex will distribute over 500 million euros (548 million dollars) to its employees this year in the form of store sales commission, bonuses and incentive payments, on meeting specific targets. In addition, financial year-end 2015 marked the end of phase one of the extraordinary profit-sharing plan announced by the Group last year for FY2015 and FY2016. According to the plan, the Group will pay out 37.4 million euro (41 million dollars) to the 78,000 employees of stores, factories, logistics, brands and subsidiaries who qualify for the plan.

Proposes dividend of 0.60 euros

Inditex’s Board of Directors will ask the company’s shareholders to approve a 0.60 euros (0.66 dollars) per share dividend, marking year-on-year growth of 15.4 percent, at the Annual General Meeting scheduled for July. A dividend of 0.30 euros (0.33 dollars) per share will be paid out in the interim on May 2, 2016, while the remaining 0.30 euros per share would be paid out on November 2, 2016 as the final ordinary and bonus dividend.

Store sales in constant currency – adjusted for seasonality on account of the leap year – rose by 15 percent between February 1 and March 7, 2016.