Clothing retailer Inditex reported accelerating revenue growth after an expansion of online sales and new stores pushed 5% profit increase in 2014.
La Coruna based world’s biggest fashion retailer states profit rose to 2.5 billion euros and the overall sales rose 8% to 18.12 billion euros, meeting market expectation. Inditex is battling fast-fashion competitors like Hennes and Mauritz and Associated British Food’s Primark by entering new markets and boosting online sales. The fall in the euro value has also helped, as the retailer’s costs are highly euro-focused.
following the drastic expansion in the number of stores by about 5% to 6,683 through January, Inditex plans to open many more outlets around 480 this year, which includes three outlets in New York. Hong Kong, Macau and Taiwan are on the charts for starting online sales.
Two months ago, the company invested on a 4400 sq m property in New York’s Soho st, which implies the continuing the company’s strategy of having large stores at the hot top shopping areas in the world’s biggest cities. The same applies to their Milan store which is located in Corso Vittorio Emanuele shopping district. The statement shows that 1/3rd of the company’s revenue come from the stores outside Europe.
The growing company proposed a 0.52 euro-per-share dividend payment, 7.5% more than previous year. Being a employee-friendly company, the company also announced a profit-sharing plan nearly 70,000 workers that will issue 10% of its annual earnings growth, which is equal to 2% of total profit.