Net profit of Zara owner falls 3.3 times

The net profit of the Spanish Inditex Group, one of the world’s largest retailers of clothing and footwear (Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho brands), for the 2020-2021 financial year (ended January 31) dropped 3.3 times to reach 1.106 billion euros, the company said, Report informs, referring to the Prime agency.

Inditex’s revenue for the reporting period decreased 1.4 times, to 20.402 billion euros. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the financial year reached 4.552 billion euros, which is 1.7 times less than a year earlier. Earnings per share were 0.355 euros versus 1.168 euros a year earlier.

In the fourth quarter, the company’s net profit was 435 million euros, which is more than half the fourth quarter of the previous fiscal year. Sales fell by a quarter year on year to 6.317 billion euros. EBITDA for the fourth quarter fell by almost a third to 1.218 billion euros.

The number of stores as of Jan. 31, 2021 fell by 8.6 percent in annual terms, to 6,829 stores, according to the report. For the same period, 30 percent of stores remain completely closed, 52 percent operate with restrictions, the company said.

Inditex was founded in 1985.