Online Sales Reach €7.5bn and Account for 25.5% of Total Sales in 2021
- Inditex’s FY21 profits surge 199% despite Omicron impact
- Online sales reach €7.5bn (£6.31bn) and represent 25.5% of total sales in 2021
- Gross profit margin reaches 57.1%, highest in six years
- EBITDA, EBIT, and PBT increase by 58%, 184%, and 200% respectively
- Sales volumes achieved with 5% fewer stores than 2020 and 13% less than 2019
- Spring/summer collections well received, sales up 33% in constant currency vs. 2021 and 21% above pre-Covid levels
- Russian Federation and Ukraine contribute to 5% of sales growth
- USA becomes Inditex’s largest market after Spain
Inditex, the parent company of Zara, reported a significant increase in income before tax of 199% to €4.19bn (£3.53bn) and net income by 193% to €3.2bn (£2.73bn) for FY21 compared to the previous year. Sales increased 36% year-on-year to €27.7bn (£23.32bn), with online sales growing 14% to reach €7.5bn (£6.31bn). The gross profit margin reached 57.1%, the highest in six years, and EBITDA grew 58% to €7.2bn (£6.06bn). Despite the Omicron variant’s impact on store traffic, Inditex managed to maintain sales volumes with fewer stores than 2020 and 2019. The spring/summer collections were well-received, leading to a 33% increase in sales compared to FY21 and 21% above pre-Covid levels. The Russian Federation and Ukraine contributed to 5% of the growth. The USA surpassed Spain as Inditex’s largest market.
Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about Inditex’s financial performance, including specific figures and comparisons to previous years. It also mentions the impact of the Omicron variant on store traffic and sales, as well as the company’s expansion into new markets.
Noise Level: 3
Noise Justification: The article provides relevant information about Inditex’s financial performance and highlights key metrics such as income, sales growth, and expansion into new markets. However, it could benefit from more analysis or context on the company’s long-term trends, antifragility, accountability, intellectual honesty, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Inditex’s stock price, retail industry
Financial Rating Justification: The article discusses financial metrics such as income before tax, net income, sales, gross profits, EBITDA, and PBT for Inditex, a major company in the retail industry. It also mentions the impact of the Omicron variant on store traffic and sales, which can affect financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The impact of Omicron variant on store traffic and sales can be considered as a minor issue.
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