Inditex: sales tumble, dividend withheld
(CercleFinance.com) - Zara owner Inditex has seen its sales tumble in the first two weeks of March in the wake of the rapid expansion of the Covid-19 virus.
The Spanish fashion retailer said on Wednesday that store and online sales in local currencies decreased by 24.1% between 1 March and 16 March.
Saying that it is "not the right moment" to take a decision on its dividend, the company has decided that its net income for the past year will be allocated to reserves.
The decision will be submitted at a later board meeting prior to the AGM to be held in July, it said.
In its statement, Inditex added that it is still too soon to quantify the impact of the Covid-19 outbreak on its business.
As of yesterday, Inditex had temporarily closed 3.785 stores in 39 countries. All its stores in China are now open, with very few exceptions.
In the past financial year, from 1 February 2019 to 31 January 2020, net sales increased by 8% to 28.3 billion euros, with like-for-like sales up 6.5%, the group said today.
Net profit rose by 6% to 3.6 billion dollars, including an inventory provision of 287 million euros due to the pandemic.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The Spanish fashion retailer said on Wednesday that store and online sales in local currencies decreased by 24.1% between 1 March and 16 March.
Saying that it is "not the right moment" to take a decision on its dividend, the company has decided that its net income for the past year will be allocated to reserves.
The decision will be submitted at a later board meeting prior to the AGM to be held in July, it said.
In its statement, Inditex added that it is still too soon to quantify the impact of the Covid-19 outbreak on its business.
As of yesterday, Inditex had temporarily closed 3.785 stores in 39 countries. All its stores in China are now open, with very few exceptions.
In the past financial year, from 1 February 2019 to 31 January 2020, net sales increased by 8% to 28.3 billion euros, with like-for-like sales up 6.5%, the group said today.
Net profit rose by 6% to 3.6 billion dollars, including an inventory provision of 287 million euros due to the pandemic.
Copyright (c) 2020 CercleFinance.com. All rights reserved.