Press releases
FY 2006 Results Presentation: Inditex invested €1,029 million in FY2006, to foster the company’s growth
* Inditex’s net sales increased 22% and its net income rose 25% in FY2006
* The Group hired 11,050 individuals in the year, and the staff reached the number of 69,240 employees, 19% higher than a year earlier
* The Group shall maintain its traditional reinvestment policy, with an estimated CAPEX of between €850 and €950 million in 2007
* Net openings amounted to 439 stores, with Inditex reaching an aggregate number of 3,131 stores in 64 countries at yearend
* Store sales in Europe were for the first time higher than those in Spain, in a year where international stores accounted for more than 60% of the total sales
* The Board of Directors will propose a dividend of 0.84 euros per share, which represents a 25% increase
* Inditex will present in July its new Environmental Strategic Plan, to foster its energetic saving policy, the use of renewable energies and the emissions reduction
Fiscal year 2006 (1st February 2006 to 31st January 2007) was marked particularly by three elements: Inditex Group’s store sales within the rest of Europe (40.6%) were for the first time higher than those achieved in Spanish stores (39.6%); secondly, the Group created 11,050 net jobs, and last, 439 new stores were launched.
The Group’s net sales increased 22% totalling €8,196 million and the net income reached €1,002 million, 25% higher than in FY2005.
With the new 11,050 jobs created in the year, the total staff of the Group amounts to 69,240 employees, a 19% increase versus a year earlier.
The launching of 439 new stores in FY2006 means that the total number of stores as at 31st January 2007 reached 3,131 in 64 countries, being Serbia and Tunisia the two new markets entered in the year. In addition, the first stores in Mainland China were opened.
Sales have increased in all formats, the weigh of international sales is higher and the reinvestment policy has been kept, with CAPEX in FY2006 having reached €1,029 million.
Key figures
| | 2006 | 2005 | 06 vs 05 |
| Net sales | 8,196 | 6,741 | 22% |
| Gross Profit | 4,607 | 3,788 | 22% |
| Gross margin | 56.2% | 56.2% | |
| EBIT | 1,356 | 1,094 | 24% |
| EBIT margin | 16.5% | 16.2% | |
| Net income | 1,002 | 803 | 25% |
| Net income margin | 12.2% | 11.9% | |
| In million Euros |
| 2006 | 2005 | 06 vs 05 | |
| Employees | 69,240 | 58,190 | 11,050 |
| Store sales | ||
| | 2006 | 2005 |
| Europe (ex Spain) | 40.6% | 38.7% |
| Spain | 39.6% | 43.1% |
| Americas | 11.0% | 10.7% |
| Asia and RoW | 8.9% | 7.5% |
Selling area
The expected increase in selling area in 2007 will continue focused on the European markets and the high rate of growth in the Asia-Pacific area will be kept. International stores will account for about 80% of the new selling area, with the increasing weigh of Europe within the domestic market of the Inditex Group.
Inditex will continue supporting this growth in its business model, based upon flexibility, production in proximity- representing 50% of the total- the multi-format strategy put in place since 1991, the prime locations and interior design of its stores, a fashion offer which meets the demand of its customers, an a strong international presence.
| Format | Estimated openings in 2007 | % international |
| Zara | 130-140 | 85% |
| Kiddy’s Class / Skhuaban | 35-45 | 35% |
| Pull and Bear | 55-65 | 70% |
| Massimo Dutti | 25-35 | 65% |
| Bershka | 60-70 | 80% |
| Stradivarius | 55-65 | 65% |
| Oysho | 45-55 | 60% |
| Zara Home | 35-45 | 70% |
| Total | 440 / 520 |
Environmental Policy
In FY2006 the Inditex Group has fostered its firm environmental strategy, mainly aimed at achieving energy savings in all its industrial and logistics facilities, as well as in its offices and stores network. In all these fields, several initiatives have been implemented regarding the use of cogeneration of energy sourced from natural gas, the installation of photothermal panels and the promotion of wind power, in order to increase the energy efficiency and to reduce greenhouse gas emissions.
Within this same framework, the new 2007-2010 Environmental Strategic Plan of the company will be presented in July 2007, with the goal of optimizing the consumption, increasing the use of renewable energies and the reduction of emissions.