Zara owner Inditex has unveiled a £1.5bn (€1.8bn) investment to bolster its logistics operations as it posts a near 30% jump in full-year profits.
The fashion giant said it would invest £768m (€900m) to “increase logistics capacities” across the next two years as it promised the “highest standards of sustainability and use the most up-to-date technology”.
It comes as the group reported its pre-tax profits surged 28.2% to €6.9bn in the year to 31 January, which it attributed to the “strong execution” of its business model and ongoing investment into its retail offer.
Inditex noted its growth was “underpinned by the investment in stores and the advances made to the online sales channel”.
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Sales for the giant jumped 10.4% to £30.7bn (€35.9bn) “showing very satisfactory development both in stores and online”.
Online sales “grew satisfactorily”, surging 16%, while store sales rose 7.9% “reflecting incremental footfall and increasing store productivity”.
The Zara owner said that performance was “achieved with 2% more commercial space and 2% less stores than in 2022”.
It noted that its spring/summer collections have been “very well received” by our customers, will sales up 11% between 1 February and 11 March compared to the same period in 2023.
Inditex chief executive Oscar García Maceiras said: “Inditex’s performance in 2023 has been excellent. Our teams have been able to take advantage of the opportunities to keep growing profitably.
“We are investing to drive future growth and continue to offer an attractive remuneration to shareholders.”
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