Tuesday, November 5, 2024

Inditex and Zara raise prices

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Bol . IslandChairman of the Inditex Group who will be replaced by Marta Ortega after 17 years in the position, shared The economic and financial results of the textile manufacturing and distribution company during the fiscal year 2021. The results show that the company he founded Amancio Ortega Reversing the crisis caused by the COVID pandemic, after recording a Profits of 27,716 million euros, an increase of 36% over 2020. “Two years into the pandemic, these results demonstrate the strength of the great company, the strength of our business model and the quality of our team,” Isla explained.

However, The negative note was taken by Inditex customers and users in Spain due to the 2% price hike Among the products that will be launched for the spring and summer campaign, while It will be 5% globally due to the inflation risks faced by many global markets.

“There are inflationary tensions and the company wants to maintain profit margins and make the necessary adjustments,” said the Inditex president. Moreover, repeat it The main policy of the textile company is price stabilitybut what “In those countries with the temporary effect of hyperinflation”They are obligated to amend High value products.

Spain, the number one sales market

Also, it has been detailed turnover levels of those countries that have Inditex stores in their geography, Among them stand out Spain, with 14.4%, followed by other European countries with 48%, America with 17.5% and Asia with 19.7%.. As for weaving chains, Zara . brand Leading the ranking with More than 39% of salesincluding your Department of Household Appliances (Zara Home), Then they meet Pull and Bear 32% and Massimo Dutti 30%.

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What is more, Pandemic outbreak caused Inditex online sales to grow by up to 14%with sales volume up to 7,500 million euros, more than 25% of total sales for fiscal year 2021 Financial position, up 24%, which is a “new all-time high”at the same time Operating profit amounted to 7,183 million euros, up 57.8% and operating profit increased by up to 180%As per the company document.

What will happen to the stores in Russia?

InditexI decided, like other textile companies Closing all its distributed stores in Russia, as well as suspending online sales. Inditex tells it in the format current conditions It cannot guarantee the continuation of operations and working conditions in the Russian Federation and temporarily suspends its activity in All 502 stores and on the state channel onlineThe company proceeded.

Oscar Garcia MaceirasCEO of Inditex, confirmed that they plan to Resumption of activity in Russia “when the situation allows”because the comment “temporary’, according to the account. In addition, he was also asked about If they had received any notification from the Kremlin about the imposed measure, but he did not provide details. Similarly, he pointed out that Russia is one of the most important countries for the company, with 8% of net operating profit and they have More than 9000 workersThose who are without a job but are still getting paid, according to the company.

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