INDITEX Group

Inditex’s 2009 net sales rose to 11,084 million euros

• Net sales in local currencies climbed by 9% from FY2008

• Store sales outside of Spain accounted for 68% of the total

• The Group’s net income totalled 1,314 million euros, 5% higher than in 2008

• At the end of its fiscal year, Inditex had 4,607 stores in 74 countries, after opening 343 stores in 2009. The first Inditex stores in India are scheduled to launch in 2010

• The Board of Directors will propose to the General Shareholders Meeting a dividend of 748 million euros, or 1.20 euros per share, an increase of 14% on the previous year

• Store sales in local currencies have increased by 14% from February 1st to March 14th 2010

The Inditex Group’s net sales rose by 7% in its 2009 fiscal year (1 February 2009 to 31 January 2010) from a year earlier, to 11,084 million euros. In local currencies, net sales rose 9% from 2008. The Group maintained its like-for-like sales in FY2009, demonstrating the flexibility of its business model.

Net income amounted to 1,314 million euros, vs. 1,253 million euros a year earlier, an increase of 5%. 

Key figures

Financial figures              (in million euros)	2009	2008	09/08
Net sales	11,084	10,407	7%
Net sales outside of Spain	68%	66%
Gross profit Gross margin	6,328 57.1%	5,914 56.8%	7% 27 bp
EBITDA EBITDA margin	2,374 21.4%	2,187 21.0%	9%
EBIT EBIT margin	1,729 15.6%	1,609 15.5%	7%
Net income Net income margin	1,314 11.9%	1,253 12.0%	5%

Expansion  

Inditex in 2009 registered 343 net openings, bringing the Group's retail network to 4,607 stores in 74 countries as of 31 January 2010. 

In keeping with the company’s strategy, 98% of new stores were in international markets. Inditex opened stores in 46 countries in 2009, expanding its retail footprint across all geographic regions, particularly Europe and Asia. 

The Group increased its retail network in all of Europe's major markets, with noteworthy growth in countries such as Russia (37 new stores) and Poland (34). In Asia, Inditex continued its strategic push into the region’s top three markets, which posted significant growth, with 41 new stores in China, 12 in South Korea and 10 in Japan.

Syria in 2009 became the latest new market to land on the Inditex global store map, with openings by Zara, Pull and Bear, Massimo Dutti, Bershka and Stradivarius.

Highlights among store openings in 2009 were a Zara store in Tokyo's Shibuya neighbourhood, which brought the number of Zara stores in Japan to 50; a flagship Zara on Chicago's Michigan Avenue —within the Magnificent Mile— and a Zara store on Beijing’s Wangfujing Street, one of the most famous shopping streets in all of Mainland China.



Other flagship stores launched in 2009 include a Pull and Bear on London’s Oxford Street; a Bershka on Saint Petersburg’s Nevsky Prospekt; Stradivarius’ store No. 500 in Athens' Kolonaki shopping area; and the first Massimo Dutti establishment in Beijing, in the Solana shopping district.

Worthy of particular note is a new Zara and Zara Home store in Barcelona’s Portal de l’Angel, the first in Europe to obtain LEED environmental certification, which puts the Group at the cutting edge of the progress of research into eco–efficient store environments as part of its Environmental Strategic Plan. The result of this project is a store that consumes 30% less energy, saves 50% more water and emits 150 tonnes less CO2 per year than a conventional location.





Sales by geographic area

 Sales outside of Spain in 2009 accounted for 68% of total sales, compared with 66% in 2008.  Europe accounted for the largest share of sales with 46%.  A highlight was the significant increase in sales in Asia, which in 2009 accounted for 12.2% of total sales vs. 10.5% a year earlier.

	2009	2008
Europe ex-Spain	45.7%	44.8%
Spain	31.8%	33.9%
Asia	12.2%	10.5%
The Americas	10.2%	10.7%

Dividend



The Inditex Board of Directors will propose to the General Shareholders Meeting a dividend of 1.20 euros per share, an increase of 14% on the previous year. The dividend shall be distributed as follows: 0.60 euros per share as an interim dividend to be paid on May 3rd 2010, with a final dividend of 0.50 euros per share and a bonus dividend of 0.10 euros per share to be paid on November 2nd 2010.

Workforce



At the end of the 2009 fiscal year, the Group’s workforce totalled 92,301 individuals, compared with 89,112 employees a year earlier. In the area of Human Resources, 2009 marked a significant development with the signing of an agreement between Inditex and the Global Union services sector International Trade Union. The agreement endorses basic corporate social responsibility principles encompassing issues such as workers’ right to join trade unions and engage in collective bargaining, environmental sustainability, fair trade and the health and safety features of merchandise, and represents significant progress in this type of agreement in the textile industry. 

Outlook for 2010

Inditex plans to expand its store network in a range of between 365 and 425 new stores. Approximately 95% of this new retail space will be located in international markets. A highlight of new markets to be launched in 2010 is India, where the Group plans its first openings beginning in May (in New Delhi and Mumbai). The Indian expansion strengthens the Group's strategy for increasing its retail space in Asia, which will be home to more than 40% of commercial surface to be added in 2010.  The first weeks of the 2010 fiscal year saw launches in new markets such as Kazakhstan and Bulgaria.

Inditex plans to launch its Zara online store to coincide with its Autumn-Winter season. The Zara online store will initially be available in France, Germany, Italy, Portugal, Spain and the United Kingdom.

Start of FY2010. Store sales in local currencies have increased by 14% from February 1st to March 14th 2010. The Spring-Summer season is influenced by the performance over the Easter period, due to the significant sales volumes during this period. 

Other 2009 figures
No. of stores Net openings		4,607 343
No. of countries		74
Employees		92,301

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