December 17, 2012

Specifying data

Looking for more concrete information about Inditex we can find the following data in the results of the 31st of January, 2012: 


  • The amount of capital since 2001 has been 93,500,000. From 1992 to 2000, capital was 92,556,000. And before 1992, capital totalled just 2,404,000.
  • Tangible assets totalled 147,425,000 (property, plant and equipment, fixed assets in progress and advances, technical fittings and other tangible assets).
  • Intangible assets totalled 25,673,000 formed by development, concessions, patents, licences, trademarks and similars, goodwill, software, investigation and other intangible assets. Patents, licences, trademarks and similars make a total of 4,390,000; the software makes a total of 11,549,000 and other intangible assets make a total of 9,734,000. The amount of the other ones is not specified,
  • Long term provisions totalled 52,180,000 (long term staff benefits obligations, environmental actions, restructuring provisions, etc).
  • Depreciation has increased in the last years. Jan, 2012: 38,669,000; Jan, 2011: 32,193,000; Jan, 2010: 30,382,000; Jan, 2009: 26,999,000; Jan, 2008: 26,790,000...







December 16, 2012

Always increasing


Why do we always talk about Zara?


Inditex decided to take this global expansion focusing only with Zara. They thought that it would be better to have a really famous brand and, then, others that weren’t as famous. So they opened more Zara´s stores than the other brands and, as a result, inditex got more revenues with Zara than the other brands.


Global expansion in the five continents


Fashion is the passion of inditex and its objective is to take this passion over the five continents, so they opened 483 new stores in 49 different countries. This global growth increased the number of workers and buildings in Spain, because inditex´s headquarters and design centers are in Spain.

If inditex wants this global expansion to be possible, they must be popular, they must be known worlwide, so they are oppening really big stores, in really important cities and in the best place of this city, for example the new store that Zara opened in New York is in the fifth avenue.

Internet is also really important for this global expansion, inditex has a website for each of their brands where it is possible to buy any of their products, and they will ship it to you. For example zara´s website: 

December 12, 2012

Inditex profits rise

Today, December 12th, 2012, Inditex has presented  the results for the first nine months of its fiscal year. Several websites have published about this information:
CNBC News 
BBC News
Fox Business 


The world's largest clothing retailer, Inditex, has reported another jump in profit, fuelled by rapid international expansion. Profit in the nine months from 1 February to 31 October rose 27% to 1.66bn euros. In that time, it added 360 new stores in 54 different markets. And sales gained 17% to 11.4bn euros.


The company has also said that it created 6,598 new jobs in the first nine months of 2012, taking its total workforce to 116,110 people.


The challenge of extending sustainability to the value chain (2011-2015)


Further to the implementation of the 2007-2010 Environmental Strategic Plan, Inditex has set the new environmental plan of the Group for the next five years, known as: ‘Sustainable Inditex 2011-2015’. This new plan aims at extending, consolidating and increasing 2007-2010 Strategic Plan, enabling Inditex to meet the goals of reducing CO2 emissions by 10% in 2015 and by 20 % in 2020, as compared to 2005.
To reach such target, the plan will have an impact on the value chain, for the purposes of reducing the global ecological footprints of the Group by implementing six action lines:

1.- New stores

Building sustainable and environment-friendly stores: by resorting to cutting edge technology in energy management and saving, and by reducing CO2 emissions.

2.- Existing stores

Redesigning the existing stores: by improving the technologies used and by optimizing their environmental management for the purposes of reducing CO2 emissions.

3.- Logistics

Optimizing routes; using state of the art efficient vehicles; insisting on the reduction of packages and training drivers to reduce consumption of fossil fuels.

4. - Employees

Training all the employees and raising their awareness regarding the global environment issue and the specific implications at their workplace.

5.- Products

Promoting the consideration of eco-friendly alternatives in the development of new products and ancillay materials.

6.- Water

Promote a more efficient water consumption at own manufacturing centers, stores and throughout the supply chain.

7. - Environment and nature

Preserving nature with a double goal:
A) Promoting sustainable management of biodiversity, fostering values-based education, focused on knowing, respecting, improving and preserving ecosystems.
B) Collaborating in the compensation of CO2 emissions caused by the activity of the Inditex Group.

A little bit more of Inditex' subsidiaries



  • Zara - This is the Parent Company. It collects many different styles, from daily clothes, more informal, to the more serious or formal, through dresses and suits for festival events. Mainly divided into fashion for women, men and children.
  • Kiddy's Class - Also named Zara Kids; contempt’s Kids Clothing from 0 to 14 years old.
  • Pull and Bear - This brand focuses on casual, laid-back clothing and accessories for young people with a very urban style, at accessible prices.
  • Bershka - Starting in 1998, this store began distributing fashion for girls, and, more recently, for boys too. It also has a young style, although not as urban as Pull & Bear.
  • Massimo Dutti - The highlights of this chain are more elegant, classic and studied designs, for daily and formal clothes. It is more expensive than the rest of stores of the group. It offers fashion for women, men and, recently, for children.
  • Stradivarius – this brand has an innovative concept in fashion, targeting young women with clothing garments and accessories.
  • Oysho - Offers lingerie and women's underwear (but also includes pyjamas, accessories, bathing suits in the summer and more) and includes collections for little girls and babies.
  • Zara Home - This chain offers interiors, utensils for household furnishings, accessories, kitchenware and Zara Home Kids (for children).
  • Uterqüe - This is the latest addition to Inditex. It offers accessories such as shoes, handbags, jewellery and sunglasses. The intention is to present an image, inspired by the English clubs, but at the same time a clear and modern ambient. More costly than the group's other brands, except Massimo Dutti, it still aims to be price competitive with the big brands in the market.
  • Tempe - Tempe is Inditex Group's footwear company. From its International Centre in Alicante, Tempe designs and distributes the footwear that accompanies the fashions of all its brands.

Financial Statements 2011


Here, we present some of the main indicators taken from the Financial Statements of 2011.

The strategy of multi-channel global growth has been supported by the results obtained during the 2011 financial year, which are at the same time a demonstration of the strength of the business model. In this period, the sales have increased significantly by 10% reaching 13,793 million euros. The increase in the turnover and the improvement in operating efficiency have made it possible to raise EBITDA by 10%, up to 3,258 million euros. Thus, the profitability of the Group continued to improve: the net profit rose by 12% and reached 1,946 million euros.



These satisfactory results, together with the opportunities for global growth, have made  possible to re-invest the funds generated in the expansion of the Group, thus reinforcing the strategy of organic growth. During the 2011 financial year, expansion has been centred on the opening of new stores located in the best commercial areas of countries with a great potential. In this regard, the entry into five new markets is particularly important: Taiwan, Azerbaijan, Australia, South Africa and Peru, with which the commercial presence of Inditex is extended to all five continents. The last three are a reinforcement of the differentiated commercial strategy which Inditex has been applying to markets located in the southern hemisphere.

During the 2011 financial year, the growth in Inditex's commercial area has continued with 483 new stores, which brings the total at the end of the year to 5,527 stores in 82 markets. This means that the commercial area has increased by 250,000 square metres. Zara continued to lead this growth: it had over a hundred net openings and contributed two thirds of the Group turnover.

The remaining chains also significantly increased their commercial presence during the financial year as they entered new markets. During 2011, Inditex opened stores in 49 different markets which served as an example of the capacity of the Group to take advantage of global opportunities. Europe and Asia remain the priority axes of the expansion of the Group.

SUMMARY:

In the 2012 financial year, rewards for the shareholders will undergo a considerable increase, with the support of the Group's solid financial position. At the General Meeting of Shareholders which will be held in July, the Inditex Board of Directors will propose a payment of a dividend of 1.8 euros per share, 12.5% greater than last year. By means of the combination of attractive rewards for the shareholder and re-investment in the business, Inditex guarantees, at one and the same time, its capacity to continue to grow in a profitable manner in the future, thus creating value for its shareholders, and to generate employment and wealth in its surroundings.

To conclude, 2011 has for Inditex involved the consolidation of its strategy of global expansion, with commercial operations on the five continents and a turning point in its commitment to a multichannel presence, with the launch of online sales in all its formats.

December 11, 2012

The real and the future situation of Inditex

In this section we are going to analyze how Inditex has grown in the last four years, until nowadays. Their actual financial situation is absolutely exemplary.

To begin we will see the growth of their sales. 
As the graphics shows, since 2007 Inditex is in continuous growth, so we predict in the near future acontinuous improvement and growth.

Below it is shown the evolution of main indicators


...




Stock performance
Inditex shares experienced a revaluation of 20.9% during 2011, closing at 66.70 euros per share on January 31, 2012. The average negotiated has been approximately 2.5 million daily actions. On 1 September this year, Inditex joined the Euro Stoxx 50 index, which includes the 50 largest companies in the eurozone. Inditex's market capitalization stood at 41,576 million at year end, up 354% at the beginning of trading on 23 May 2001. In the months of May and November 2011 was paid the dividend for fiscal year 2010, with a
total amount of 1.60 euros per share.


What makes Inditex industry leader?
It has more than 21 million loyal customer
More than 109.000 employees
More than 1.300 suppliers in continuous improvement.
More than 60.000 shareholders investors...

They have their objectives for the future some are:
For shareholders: 
-Consolidation valuing Inditex in the Dow Jones Sustainability and FTSE4Good
For Employees:
-Clustered teambuilding Turkey, China and Morocco
-Consolidation of health and safety equipment Product
-Development of specific training programs for sales teams in health and product safety
shareholders

For clients:

-Implementation of CTW and STW Inditex Reasonable & Responsible Testing Program in the production chain
-Active participation in discussion boards and committees related to health policy development and security
product
-Promotion of cooperation programs to strengthen the production
-Continuous updating of health and safety standards
etc..





December 7, 2012

Inditex outlook for the next quarter

A few days ago, Zara, the Inditex Group’s fashion retailer, opened a flagship store featuring its revamped image  in London's city centre. What’s more, the new Oxford Street store is Inditex’s 6000th outlet. The revamped store image is based on four guiding principles: beauty, clarity, functionality and sustainability. Simplicity is the byword throughout the store as part of Zara's mission to bring customers into direct contact with fashion.
These news about new store openings added to the resulting increase in commercial area have deemed an increase in sales.
Several websites have published about these estimations:
Intereconomia news (spanish)
Cotizalia news (spanish)
What they come to say is that it is expected an increase of 18%, more or less, in the third fiscal quarter over the same period last year.




Inditex will present the results for the first nine months of its fiscal year on Wednesday 12 (Dec/12/2012), before the opening of markets.



December 3, 2012

How Zara Grew Into the World’s Largest Fashion Retailer

The New York Times magazine has published an article about:
"How Zara grew into the world's largest fashion retailer"


In the article, we can find the information that Inditex, nowadays, makes 840 million garments a year and it has around 5,900 stores in 85 countries, but this number is always changing because Inditex opens more than a store per day, or about 500 stores a year. 

In the last five years, Inditex’s overall sales have grown to 13.8 billion euros a year and profit has risen to almost 2 billion euros a year. The number of employees also has expanded to 110,000 employees in 2011, from around 80,000 in 2007. 


The most stable values

The Spanish web "www.expansion.com" has recently published that Inditex is one of the most stable values in the IBEX 35. It is in Spanish, but the whole piece of news can be found in this link:
Grifols, Inditex and Telefónica

Summing up, what the news says is that Inditex is one of the values that less daily fluctuations experienced in the last year and that it probably will present similar levels for next year.