Zara owner Inditex reports small rise in profits

Zara

Related Stories

Inditex, the Spanish fashion giant behind Zara, has reported a small increase in profits for 2013.

The world's largest clothing retailer said net income for the 12 months to the end of January rose by just 1% to 2.4bn euros ($3.3bn; £2bn).

The firm was hit by refurbishing costs and by weakening currencies in many of its non-euro markets.

However, Inditex said its sales in the six weeks to 15 March 2014 had increased by 12%.

Inditex owns eight High Street chains, including Massimo Dutti, Bershka and Pull and Bear.

Sales across all its stores increased by 5%, but sales growth in Europe, excluding Spain, was just 0.5%.

Homeware and interiors brand Zara Home saw the sharpest rise in sales, up by 29%.

Expansion plans

Inditex opened 331 new stores in 2013, and now operates 6,340 stores in 87 countries.

It announced plans to open between 450 and 500 additional stores in the coming year.

The company has also been expanding its online operations, adding web stores in Canada and Russia last year.

The Spanish firm will launch online Zara stores in South Korea and Mexico this year.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

BBC Business Live

  1.  
    BUSINESS REACTION 09:44: World Service

    Even with the "No" vote business may still decide to move jobs south, says Scottish entrepreneur, Patrick MacDonald on Business Daily. He says London is the "natural" place to be headquartered in the UK. He reminds us that in Quebec nearly a quarter of big businesses left the region in between independence votes - including the Bank of Montreal.

     
  2.  
    GSK FINED $492M 09:33:

    Mark Reilly, the former head of GSK in China, and other so far un-named GSK executives are also expected to face prison sentences of between two to four years, according to the Chinese Xinhua press agency. GSK has yet to release a statement. We'll bring it to you as soon as the company does.

     
  3.  
    GSK FINED $492M 09:30: Breaking News
    A flag bearing the logo of GlaxoSmithKline flutters next to a Chinese national flag outside a GSK office in  Shanghai

    Pharmaceutical giant GlaxoSmithKline (GSK) has been fined $492m (£297m) by Chinese authorities in relation to bribery allegations brought against the company earlier this year. Changsha Intermediate People's Court in Hunan Province, found GSK executives guilty of "offering money or property in order to obtain improper commercial gains" and has found the company guilty of bribing non-government personnel.

     
  4.  
    BUSINESS REACTION 09:15: World Service

    Patrick MacDonald a Scottish entrepreneur, says that small and large businesses "quietly confessed" to him that they have not been sleeping at night. On Business Daily he claims that some were even prepared to make redundancies this morning, in the event on a "Yes" vote.

     
  5.  
    Via Twitter Douglas Fraser Business and economy editor, Scotland

    tweets: "Scotch Whisky Assoc welcomes stability: "debate has shown need for govt + business to collaborate to address long-term economic challenges""

     
  6.  
    BUSINESS REACTION 09:04: World Service

    Lord Haskins, former chairman of Northern Foods, thinks there could be "consequences" for the supermarkets that took positions supporting a "No" vote. Speaking on Business Daily, he says there is a danger they could be shunned by shoppers.

     
  7.  
    BUSINESS REACTION 08:53: World Service

    Business Daily on BBC World Service, is coming live from Edinburgh and speaks to Sir Brian Souter, founder of the Stagecoach Group of bus and rail operators and a supporter to the "Yes" campaign. He says it's "unfortunate" that business became so involved in the debate. He thinks that some business leaders who spoke out "would not dream of" telling their US customers how to vote.

     
  8.  
    CITY REACTION 08:47: BBC Radio 4

    Sir Tom Hunter, the former owner of Sports Division and Scotland's first home grown billionaire, tells the Today programme that the high turnout for the vote was "fantastic for democracy". "I think Scotland has rocked the political establishment from its roots in Westminster," he adds.

     
  9.  
    MARKET REACTION 08:34:
    Alix Stewart

    The BBC's Simon Jack is at Schroders in London's financial district. On BBC World News he speaks to market strategist, Alix Stewart. "We can go back to concentrating on the economy," she says. "It's clear rate rises will be coming," she reminds us.

     
  10.  
    LLOYDS REACTION Via Twitter Kamal Ahmed BBC Business editor
    Kamal Ahmed tweet

    Tweets: "Lloyds Bank statement on Scotland more equivocal than RBS. Keeping options open on legal domicile"

     
  11.  
    DEVOLUTION 08:23: Radio 5 live

    On Radio 5 live Simon Walker, director general of the Institute of Directors says the promised devolution of power will result in "big challenges". It should by about "enterprise and boosting competitiveness" in all regions of the UK and not "adding layers of bureaucracy".

     
  12.  
    MARKET REACTION 08:14:

    London's FTSE 100 index has opened 0.6% higher. Royal Bank of Scotland has jumped 3.3%, Lloyds Banking Group is up 2% and energy firm SSE is up 3.4%.

     
  13.  
    INTEREST RATES 08:10: Radio 5 live

    "The odds of a February rate rise should be pretty high now," says Ewen Cameron Watt, chief investment strategist at BlackRock Investment Institute on Radio 5 live. He thinks interest rates could move higher as early as November. A rate rise would have been "off the cards" for most of next year, if there had been a "Yes" vote, he says.

     
  14.  
    LLOYDS REACTION 08:07:

    Lloyds Banking Group has made this rather nebulous statement: "Lloyds Banking Group has maintained a neutral stance in this debate as we believe the decision was to be solely a matter for the people of Scotland. The group is proud of its strong Scottish heritage and remains committed to having a significant presence in Scotland. We remain fully focused on supporting households and businesses in Scotland as well as right across the rest of the UK."

     
  15.  
    STANDARD LIFE REACTION 07:55:

    We had to call Standard Life to find out what they actually meant. The insurer told us it has "shelved plans" to move operations to London "for now". "We've no plans to move any of our operations," it adds.

     
  16.  
    STANDARD LIFE REACTION 07:54:

    Standard Life, one of the companies that threatened to partially decamp from Scotland in the event of a Yes vote, now says: "We will consider the implications of any changes for our customers and other stakeholders in our business to ensure their interests are represented and protected." It adds it is "now important that we all move forward with respect and work together constructively in the best interests of Scotland and the UK". So that's clear then.

     
  17.  
    SCOTLAND POWERS 07:42:
    Prime Minister Cameron

    Prime Minister David Cameron has promised to come up with plans for new Scottish powers on tax, spending and welfare. The government is aiming to get an agreement by November. The BBC's personal finance reporter Brian Milligan is having a closer look at what that could mean.

     
  18.  
    MARKET REACTION 07:33: BBC Radio 4

    Anne Richards, chief investment officer at Aberdeen Asset Management tells Today: "A very close vote would have been a difficult one for markets." She adds: "I think we have had a reconnection between the political establishment, business and the electorate. And it would be good to see that momentum maintained going into the general election."

     
  19.  
    HEADLINES
    • Pound rises strongly after "No" vote
    • China fines Glaxo over bribery allegations
    • RBS head office to remain in Scotland
     
  20.  
    ALIBABA SHARE SALE 07:29:
    Alibaba

    Away from Scotland's vote, shares in Alibaba start trading in New York later today. It has raised $21.8bn (£13.2bn) in one of the biggest ever stock market debuts. It is likely to use the money to expand in the US where it has a very low profile. A survey by Reuters showed that 88% of Americans had never heard of China's biggest internet firm.

     
  21.  
    RBS STATEMENT 07:21: Kamal Ahmed BBC Business editor

    Royal Bank of Scotland has given a statement to the BBC's business editor, Kamal Ahmed, it says: "The announcement we made about moving our registered head office to England was part of a contingency plan to ensure certainty and stability for our customers, staff and shareholders should there be a 'Yes' vote. That contingency plan is no longer required. Following the result it is business as usual for all our customers across the UK and RBS."

     
  22.  
    REFERENDUM REACTION 07:14: BBC Radio 4

    Patrick MacDonald former boss of John Menzies, tells the Today programme the debate over Scottish independence has changed the country forever. "Things will never be the same again," he says. There is now "a need to reform our 300 year old constitution" and the country also needs to work at reconciliation to "make sure businesses stay in Scotland".

     
  23.  
    RBS 07:08: BBC Radio 4

    A little more from Mike Amey on the referendum result. He tells Today: " I suspect there's a very large sigh of relief at RBS [over the result] They don't have to worry about where they were going to be based and how they were going to conduct their future business."

     
  24.  
    MARKET REACTION 07:07: BBC Radio 4

    Mike Amey, managing director and portfolio manage at bond trader PIMCO tells Today he expects the markets to open higher as a result of the Scottish referendum result. "It will be back to the data for our traders and what the Bank of England will do [on interest rates]."

     
  25.  
    MARKET REACTION 06:49: Radio 5 live

    Adam Parsons is in the City at the offices of stockbrokers IG with their chief market strategist, Brenda Kelly. She says the opening of the FTSE 100 might be quite as dramatic as some expect. That's because markets have been predicting this outcome over the last few days. However, she says, it could "break through 6930" which would be a record high.

     
  26.  
    06:42: Via Email Linda Yueh Chief business correspondent

    There are other uncertainties now for Scotland after this vote. But, for markets at least, the big uncertainty that could have lingered for a year and half over the currency and the economy is lessened and sentiment is positive as a result.

     
  27.  
    06:33: Louise Cooper, CooperCity market blog

    "So it's up up and away this morning, the question is how far does it [the pound] go before reality sets back in and other political fears begin to dominate: The rows in Westminster over devolution max which has been promised. The General Election and the UK referendum on EU membership. Party conferences season resumes next week so there will be plenty of headlines to be written about the next set of political risks."

     
  28.  
    CITY REACTION 06:27:

    The Lord Mayor of the City of London, Fiona Woolf has welcomed the outcome of the Scottish referendum. "The proposed enhanced devolution that Scotland will experience while remaining in the UK will enable its national spirit to thrive while our entwined economies and business communities prosper together," the Lord Mayor said.

     
  29.  
    YES CAMPAIGN CONCEDES 06:23: BBC Radio 4
    Scottish first minister Alex Slamond

    Scotland's first minister Alex Salmond has hailed 1.6 million votes for independence. He concedes that "we now know there is going to be a majority for the "No" campaign". Scotland has, by majority at this stage, voted not to become an independent country," he adds. He expects devolution promises to be honoured with "rapid force".

     
  30.  
    ROYAL BANK OF SCOTLAND Via Email Kamal Ahmed BBC Business editor

    With No confirmed as the winner in the referendum, we can expect the Royal Bank of Scotland to say there is now no need to move domicile to London. The bank had prepared for a "Yes" vote by saying last week that it would move its headquarters from Edinburgh. I wouldn't be surprised if Ross McEwan, the chief executive, re-iterated the bank's commitment to Scotland. I am sure RBS's executives are relieved that the upheaval of independence will now not happen.

     
  31.  
    POUND STRENGTHENS 06:12:

    A decisive win for the No campaign could lead to big spike in the Pound. Jeremy Cook, economist at World First says. The obvious risk to the currency markets was a Yes, and that would have caused a big sell off. Now the markets will go back to concentrating on the fundamentals of the UK economy," he adds.

     
  32.  
    SCOTLAND INVESTMENT 06:01:

    Simon Walker, director general of business group the Institute of Directors has given an interview to the BBC. He says he thinks the government will now give the green light to investment projects that had been previously held up because of the uncertainty caused by the independence referendum. He adds the ending of that uncertainty will be positive for business.

     
  33.  
    POUND STRENGTHENS 05:54:
    pound versus dollar

    This chart shows the pound against the dollar over the last month. You can see it dipped to a low of $1.6071 on 10 September. That was after a poll in the Sunday Times showed a lead for the "No" campaign. It is now trading at $1.65. That's a move of 5 cents which is pretty big over two weeks.

     
  34.  
    MARKET UPDATE 05:47: BBC Radio 4

    Asian markets are up nearly 2% overnight BBC business correspondent Linda Yueh, tells Today. The market indications are that the FTSE 100 will open 0.7% higher. That's not exactly a surge but it is a positive reaction.

     
  35.  
    BANK OF ENGLAND 05:42: BBC Radio 4

    Justin Rowlatt is down at the Bank of England for BBC Radio 4's Today programme: He says the lights are on and staff are busy working inside. Although perhaps not quite as frantically as if Scotland was looking on course to vote Yes in the referendum. Bank governor Mark Carney cut short a meeting to fly home overnight. "He may have had a wasted trip," Justin says.

     
  36.  
    POUND STRENGTHENS 05:36:
    Pound dollar

    This chart shows how the pound has faired against the dollar since the polls closed in Scotland on Thursday evening. As you can see it's strengthened from a low of $1.63 to above $1.65, that's its highest point since the start of the month. In currency market terms it's also a huge move in a short space of time.

     
  37.  
    05:30: Ben Morris Business Reporter

    The pound has bounded higher overnight in reaction to the Scotland vote. More reaction through the morning. Stay with us.

     
  38.  
    05:30: Matthew West Business Reporter

    Morning folks. It looks like - with 26 of 32 local authorities now having declared the result of their ballots- that the No campaign is on course to win the Scottish independence referendum. We'll bring you all the reaction from the financial markets and the business community as it comes in. As always if you want to get in touch you can email us at bizlivepage@bbc.co.uk or tweet us @bbcbusiness.

     

Features

From BBC Capital

Programmes

  • A screenshot from Goat SimulatorClick Watch

    The goat simulator which started as a joke but became a surprising hit, plus other technology news

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.