The retailer will spend €1 billion (£795.6 million) on expansion this year, opening 640 stores – 85 per cent of which will be outside Spain. New markets will include Korea, Ukraine, Egypt and Montenegro, taking the number of countries the retailer trades from to 72 by the end of this year.
The group, which operates fascias including Zara, Massimo Dutti and Bershka, will also open a chain called Uterqüe in the second half, selling accessories, shoes and bags.
In the year to January 31, profits at Europe’s largest clothing retailer jumped 25 per cent to €1.3 billion (£1.03 billion). Sales climbed 15 per cent to €9.4 billion (£7.48 billion), just below market expectations. Like-for-like sales rose 5 per cent, compared with 5.5 per cent in 2006.
International sales contributed 62.5 per cent of group sales compared with 60.4 per cent in 2006. Spanish sales rose 37.5 per cent against a 39.6 per cent rise overall.
Inditex shares have fallen 17.2 per cent since the start of the year as the slowdown in Spain, where it generates the bulk of its sales, continues.
According to chief executive Pablo Isla, like-for-like sales at the Spanish division have been rising at slightly below the rate for the group. However, he forecast a “continued good performance” in Spain.
Group like-for-likes fell 3 per cent in the second half, down 4 percentage points from the first half.
But since the year end, Inditex said sales, measured in local currencies, have risen 17 per cent.
Bernstein analyst Luca Solca said that, despite short-term weakness indicated by the declining like-for-like performance, the store roll-out plan “shows Inditex’s ability to grow medium term, thanks to its international beachheads and format portfolio”.
He added that the introduction of the Uterqüe fascia will “strengthen Inditex’s format portfolio further”.
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