Press releases
Inditex’s 2008 net sales reached 10,407 million euros
Net sales in local currencies and constant perimeter increased by 12%
• Inditex outperformed the sector in a challenging retailing environment
• The Inditex Group continued to create jobs. The retailer had a workforce of 89,112 employees at the end of the year, after creating more than 9,000 new jobs in 2008
• In FY2008 sales growth was positive in all geographical areas
• Net income increased to 1,253 million euros
• Inditex ended the year with 4,264 stores, 573 more than in 2007. Of its total retail surface area, 85% was outside of Spain. The company debuted in new markets with the opening of its first stores in Ukraine, South Korea, Montenegro, Honduras and Egypt. International sales accounted for 66% of total sales, compared with 62.5% in 2007.
• Gross profit reached 5,914 million euros, 11% higher than in FY2007, resulting in a Gross margin of 56.8%
• The Board of Directors will propose to the General Shareholders Meeting a dividend of 654 million euros, 1.05 euros per share
• February monthly store sales in local currencies excluding calendar effects have increased by 9%. The Spring-Summer season is influenced by the performance over the Easter period due to its significant sales volumes.
The Inditex Group’s sales in 2008 (from 1 February 2008 to 31 January 2009) totalled 10,407 million euros, an accounting increase of 10% from 2007, an increase of 12% in terms of underlying business growth in local currencies and constant perimeter. Net profit stood at 1,253 million euros vs. 1,250 million euros in 2007. Stripping out the impact on 2007 earnings of a franchise agreement in Venezuela, 2008 profit rose 3%. Like-for-like store sales were unchanged from 2007.
Key figures
| Financial information | 2008 | 2007 | 08/07 | Adjusted variation (*) |
| Sales | 10,407 | 9,435 | 10% | 12% |
| Ventas internacionales | 66% | 62.5% | ||
| Margen bruto sobre ventas | 5,914 56.8% | 5,349 56.7% | 11% | 11% |
| EBITDA sobre ventas | 2,187 21.0% | 2,149 22.8% | 2% | 3% |
| EBIT sobre ventas | 1,609 15.5% | 1,652 17.5% | (3%) | (1%) |
| Beneficio neto sobre ventas | 1,253 12.0% | 1,250 13.3% | - | 3% |
(*) In local currencies and constant perimeter, and excluding non-recurrent incomes.
| Other indicators | 2008 | 2007 | 08/07 |
| CAPEX | 937 | 942 | - |
| No of stores Net openings | 4,264 573 | 3,691 560 | |
| No of countries New countries | 73 5 | 68 4 | |
| Employees | 89,112 | 79,517 | 9,595 |
Expansion. The Group opened 573 stores in 2008, bringing its total number of shops to 4,264. The Group now has stores in 73 countries, five of which were new markets in 2008 (Ukraine, South Korea, Montenegro, Honduras and Egypt). Shops outside of Spain accounted for 85% of the company’s new retail surface area, with notable growth in Europe’s fastest-growing markets, such as France and Italy (with 48 and 47 new outlets, respectively). Similarly, Inditex expanded its presence in the Eastern European and Asian regions (194 new shops).
Another highlight of store openings in 2008 were the first 31 stores under the Group’s new concept, Uterqüe, in Spain, Portugal and Greece. This retailer’s launch has exceeded Inditex’s expectations.
Sales by geographic area. Group sales rose in all geographic areas in 2008. Thanks to Inditex’s highly geographically diversified retail base, international sales in 2008 accounted for 66% of total sales, an increase of 3.5 percentage points from a year earlier.
| 2008 | 2007 | |
| Europe (ex. Spain) | 45% | 42% |
| Spain | 34% | 37% |
| Asia | 10% | 9% |
| The Americas | 11% | 11% |
Dividend. Inditex’s Board of Directors will propose to the General Shareholders Meeting a dividend of €1.05 per share, €654 million according to current number of shares. €0.55 will be payable on 4 May 2009 as interim dividend and €0.50 would be payable on 2 November 2009 as final dividend.
Outlook for 2009. In FY2009, another challenging year for the sector, Inditex expects to continue outperforming the industry, while the profitable expansion of the business remains a key priority. Inditex will capitalize on the opportunities arising from the current environment and will strengthen its focus on capital efficiency.
As part of this strategy, and bolstered by the flexibility and adaptability of its business model, Inditex will continue to roll out its expansion plan. The Group expects to add 230,000 square metres of retail surface area, approximately 95% of it in international markets.
| Openings forecast for 2009 | Range | % International |
| Zara | 125-135 | 98% |
| Pull and Bear | 45-55 | 95% |
| Massimo Dutti | 30-40 | 98% |
| Bershka | 55-65 | 90% |
| Stradivarius | 65-75 | 80% |
| Oysho | 20-30 | 70% |
| Zara Home | 15-25 | 75% |
| Uterqüe | 15-25 | 50% |
| TOTAL | 370-450 |
Early first quarter 2009. February monthly store sales in local currencies excluding calendar effects have increased by 9%. The Spring-Summer season is influenced by the performance over the Easter period due to its significant sales volumes.