Inditex: swings to loss due to store closures
(CercleFinance.com) - Spain's Inditex on Wednesday reported a quarterly loss and a 44% drop in sales, as the Spanish fashion retailer had to close up to 88% of its stores during the lockdown period due to the Covid-19 pandemic.
The owner of Zara reported a net loss of 409 million euros for its first quarter - between 1 February and 30 April - nothing like last year's net profit of 734 million euros in the same period.
The latest quarter included a provision of 308 million euros for the
completion of a plan intended to boost online sales and further integrate the store platform, Inditex said.
Note that without the provision, the net loss would have been -175 million euros.
Net sales reached 3.3 billion euros in the quarter, down 44% from the 5.9 billion euros reported for the first quarter of last year.
In its statement, Inditex said that sales trends began to improve in May, although they are not yet at normal levels. As of 8 June, 5,743 of its stores - 78% of total - were open.
Its executive chairman, Pablo Isla, today unveiled a plan for the next two years, under which the company will accelerate its digital transformation strategy, aiming to make investments of 2.7 billion euros over 2020-2022.
The shares were up 0.5% after this report.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The owner of Zara reported a net loss of 409 million euros for its first quarter - between 1 February and 30 April - nothing like last year's net profit of 734 million euros in the same period.
The latest quarter included a provision of 308 million euros for the
completion of a plan intended to boost online sales and further integrate the store platform, Inditex said.
Note that without the provision, the net loss would have been -175 million euros.
Net sales reached 3.3 billion euros in the quarter, down 44% from the 5.9 billion euros reported for the first quarter of last year.
In its statement, Inditex said that sales trends began to improve in May, although they are not yet at normal levels. As of 8 June, 5,743 of its stores - 78% of total - were open.
Its executive chairman, Pablo Isla, today unveiled a plan for the next two years, under which the company will accelerate its digital transformation strategy, aiming to make investments of 2.7 billion euros over 2020-2022.
The shares were up 0.5% after this report.
Copyright (c) 2020 CercleFinance.com. All rights reserved.