Itx de diseno sa, the world's largest clothing retailer, continued to widen the gap between its struggling rivals with 14.1 % revenue growth and 18.1 % earnings growth in the first quarter.
In the first quarter of the February - April quarter, the net sales of inditex sa Indian group rose to 55.69 euros from 48.79 billion in the same period last year, slightly surpassing the market's expected € 55.4, or 12.5 % of the fixed exchange rate. And so far in the fiscal year ending June 3, sales are up 12 per cent on the local currency year - on - year, and Anne ms.critchlow, an analyst at socié té gé né rale sa law, points out that this means that net sales in the first five weeks of the second quarter are 10.8 per cent higher on local currency terms, and same-store sales growth at 4.8 - 5.8 per cent, compared with a 9 per cent pace in the same period last year, slowing both the ring and previous year.
Pablo Isla, chairman and chief executive of the inditex sa Indian group, did not respond to the weakness in sales after the earnings report, but said the local market was still " very healthy ".
Richard chamberlain, a capital market analyst at RBC capital markets LLC, notes that inditex sa ( itx. MC ) shares are under pressure in the short term, down from a peak of 2.1 per cent to 35.10 euros in early morning trading.
During the first quarter, the inditex Indy group opened 93 stores in 30 markets, and the total number of outlets in 93 markets worldwide increased to 7 as at 30 April, representing a net increase of 300 over the same period last year, of which 2 / 3 zara brands account for 2 / 3 of the group, and 087 and stradivarius have thousands of stores respectively.
Net profit of 6.54 million euros, basically meeting the market expected 6.55 billion. Core profit ebitda of 11.13 billion, up 16.5 percent from 9.55 billion euros in the same period last year. Analysts expect the exchange rate this year to be more favourable to the group, Anne ms.critchlow expects the group's ebit and profit margins to be positive.
Gross margin of 58.2 % in the first quarter, up 10 basis points from the same period last year, ebitda margins also increased by 40 bps to 20.0 %. Group management at today's telephone conference, reiterated that this year's gross margin will not fall expectations.
During the period, the group said the continued consolidation of online and offline channels has been effective, and now approximately 1 / 3 of orders from zara stores, and many customers also tend to drop online orders, the group thus saving logistics costs.
Since this year, the online expansion of the inditex Indian textile group is mainly concentrated in southeast Asia, now landing in Singapore, Malaysia, Thailand and Vietnam, and will open up e-commerce channels in the Indian market in the autumn. Anne ms.critchlow estimates that e-commerce accounts for about 7 % of the group's sales.
In contrast, HMB & esprit, the parent company of h & m, showed a 3.5 % decline in net profit for the first quarter of March, and sales rose by only 4 % on local exchange rates, and fell further in February for the first time in four years.