INDITEX. Resultados Primer Semestre 2016

FIRST
HALF
2016
R
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MAIN INDICATORS
2
Brands’ initiatives and expansion
4
Social & Environmental
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Start of the second half of 2016
17
Inditex GrOUP first
half net sales up 11%
from a year earlier
|| Over the past 12 months, Inditex
has created almost 10,000 new
jobs, of which, 2,421 were in
Spain
|| The Group currently has
a presence in 92 markets
following the launch of Zara in
Vietnam on 8 September
|| Inditex’s Chairman and CEO,
Pablo Isla, has highlighted
“the importance of its model
which fully integrates bricksand-mortar stores and online”,
emphasising the technological
investment by the company in
this sphere
|| All brands will launch online
sales in Turkey in October.
The Group currently operates
online in 39 markets
|| Over the period, Pull&Bear
opened its new head office,
which features the latest
advances in eco-efficient
building, while Stradivarius has
launched a new global flagship
in London
|| In the first half, total net sales
reached €10.47 billion, with net
profits of €1.26 billion, up 8%
from a year earlier
|| Between 1 August and 18
September 2016, stores and
online sales in local currencies
grew by 13%
|| Like-for-like sales grew by 11%
|| Inditex opened new stores in
38 markets during the period,
closing the first half of 2016
with a total of 7,096 stores
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Inditex’s net sales during the first half of
2016 (between 1 February and 31 July)
increased by 11% to €10.47 billion, with
positive growth in all geographical areas
where the Group is present. Sales in local
currencies grew 16%. Net profits hit €1.25
billion, up 8% from the same period the
previous year. Like-for-like sales grew by
11%, on top of 7% growth over the same
period in 2015.
Vietnam in the third quarter, the Group now
has a presence in 92 markets, 39 of which
also boast online stores.
Inditex’s chairman and chief executive,
Pablo Isla, highlighted “the importance
of its model which fully integrates
bricks-and-mortar stores and online”,
emphasising the technological investment
being made by the company in this area.
He continued: “Both our online and
bricks-and-mortar stores are seamlessly
connected, driven by platforms such as
mobile payment, and other technological
initiatives that we will continue to
develop”.
All of the Group’s brands increased their
international presence during the period,
with 83 new stores in 38 countries. This
takes the Group’s total number of stores
to 7,096. Following the launch of Zara in
KEY FINANCIAL INDICATORS
(1H16)
(€ bn)
1H16
1H15
16/15
Sales
10.47
9.42
11%
9%
Gross margin
5.95
5.47
56,8%
58,1%
EBITDA
2.11
1.97
7%
EBIT
1.61
1.49
8%
Net profit
1.26
1.17
8%
on sales
JOB CREATION
Once more, Inditex has been able to
continue significant job creation, with some
9,932 new jobs created over the past 12
months.
Some 2,421 of these jobs were created in
Spain, where the Group is headquartered,
with new staff to support international
growth as well as from investment in
operating capacity of the Group’s facilities.
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INDI
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2
Brands’
initiatives and
expansion
Expansion in ALL
geographic areas
During the first half of 2016, all
brands have opened important stores
in prime locations, with a total
of 83 new stores in 38 different
international markets. During the
period, the Group ventured into
three new markets– Aruba, Nicaragua
and Paraguay– and during the third
quartered in September it opened
its first store in Vietnam meaning
that Inditex is now present in a
total of 92 markets. Each brand has
continued with the Group’s strategy
of investing in their image both online
and in physical stores.
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0
1
6
The new Zara store on calle Compostela has been put
forward for LEED Gold environmental certification.
In this regard, it is worth highlighting
the new Zara store opened on calle
Compostela in A Coruña, Spain on 1
September, located close to the Group’s
headquarters. The new store includes
2,400 m² of retail space spread over five
floors displaying Zara’s latest collections
– Woman, Man and Kids. The building
has been carefully renovated to conserve
the architecture that represents the city’s
heritage and highlights many of building’s
original features. The store displays,
vast windows and glass galleries, and
has been put forward for LEED Gold
environmental certification as part of the
Group’s eco-efficient store plan.
This new opening of a landmark store of
global importance has been accompanied
by other significant new stores, including
in Soho, New York, in the United States,
or the Group’s first stores in Aruba and
Nicaragua. Zara has opened stores in a
range of markets such as China, Canada,
Thailand, Saudi Arabia, Germany, Mexico,
Indonesia and Japan. There has also
been significant expansion work to stores
in Puerto Rico, Cologne (Germany) and
Antwerp (Belgium), which, in line with the
brand strategy, have increased their retail
space as well as renewed their image. On
September 8th, Zara also added its first
store in Vietnam in Ho Chi Minh City. The
brand is also set to launch in Auckland,
New Zealand during the first week of
October.
ı5ı
The new Pull&Bear
head offices adhere
to the very highest
environmental
standards.
Meanwhile, Pull&Bear has opened its
new headquarters in Narón, Spain, which
incorporates the latest eco-efficient
building technology. This includes open
spaces, reductions in water consumption
and emissions, efficient use of energy and
air quality measures.
The brand has also sponsored international
events including the Pantin Classic Pro
world surfing championship and Moto GP
championship (as the official sponsor of
the Aspar motorcycle team). It has also
continued to update its store concept
California, starting with the opening of the
brand’s store on Calle Hermosilla, Madrid,
in November of last year. Also noteworthy
are the brand’s new stores in Russia,
Luxembourg and Austria, along with
openings in another 20 countries including
Mexico, the United Kingdom, Italy, France,
Nicaragua, Jordan and China.
ı6ı
Massimo Dutti reached an important
milestone with its launch in India with its
store in New Delhi’s Citywalk shopping
centre – this marks the Group’s second
brand to enter the Indian market. The
brand’s image has been further enhanced
with the photographic work of Mario
Testino. It has also updated its online
website and app, achieving a very fluid,
user-friendly browsing experience.
Massimo Dutti has also revamped its
fortnightly digital publication, Paper, a
platform of contents for all of the brand’s
product lines: Women, Men, Boys&Girls
and Personal Tailoring.
including jackets, pencil skirts, dresses
and layering pieces.
The brand has continued to develop this
new store concept, which also introduces
more space and the use of marble,
leather, and hardwoods as essential
elements of its interior decoration. Other
new motifs are inspired by the brand’s
traditional support for international
equestrian events, both in its architecture
and in its fashion offering. This concept
has been implemented not only in the
New Delhi store but also in the recently
launched stores on Xiangyin Road in
Shanghai, China; Buchanan Street in
Glasgow, United Kingdom; Pacific Centre
in Vancouver, Canada; and Kutuzovsky
Prospekt in Moscow, Russia. It has also
been used in new stores in France,
Switzerland, South Korea, Taiwan,
Germany and Italy.
OOne of the most significant initiatives
within Massimo Dutti’s new store concept
is its Tailored Corner; a section that aims
to achieve a new take on classic tailoring
to offer new pieces in top-quality fabrics
along with more relaxed workwear,
Massimo Dutti’s new
image has already
been featured in
launches like this one
in Glasgow, United
Kingdom.
ı7ı
Bershka
its store
concerts
Vittorio
is developing the Stage concept in
s, which is linked to music and live
. Pictured: the recently renovated
E m a n u e l l e sto re i n M i l a n , I t a l y.
Meanwhile, during the same period,
Bershka’s activity was characterised by
efforts to strengthen its links with music.
The brand has initiated collaborations with
Spotify with the Bershka Festival Tour; a new
digital platform inspired by the greatest
music festivals as examples of the synergies
between fashion and music. This microsite,
hosted on Bershka.com, offers weekly
charts linked with each of the festivals and
personalised for each individual user. The
site uses algorithms with contents designed
by expert stylists to suggest different fashion
looks in line with users’ musical tastes.
Strong links with music are evident in
the new store concept developed by the
brand under the title Stage with a focus on
technology and sustainability. New devices
offer customers more precise information
on collections, with additional aspects that
improve stores’ eco-efficiency: doormats
made from recycled tyres, chemical-free
paints, efficient air-conditioning systems,
LED lighting with low-consumption control,
recycled wood, and so on.
This new store concept has been
implemented in all store launches during
the period, with significant refurbishments
to stores on Vittorio Emanuele in Milan,
Italy; Hong Kong; and Oxford Street,
London, in the United Kingdom. This
new image is also present in the store
on Nanjing Road in Shanghai, China.
Moreover, the brand has opened stores in
countries such as Russia, Mexico, Austria,
Guatemala, Nicaragua, Indonesia and
Japan.
Alongside these initiatives, the brand has
also launched its Young Designers Project,
which offers opportunities to young people
with talent to display their work in the
brand’s image stores, introducing two new
concepts in its retail offering: Papelería and
Bath&Body. The first is a range of office
materials, which incorporates the latest
fashion trends into the world of illustration.
Bath&Body offers a range of high-quality
bath and skincare products.
ı8ı
Stradivarius has also held its annual event
The Event Paper at its recently opened
flagship store at No. 309, Oxford Street,
London; a space that has become an
international landmark for the brand, with
more than 1,500 square metres of retail
space. The event was attended by model
Hailey Baldwin.
Stradivarius store
in Kalverstraat,
Amsterdam, Holland:
a landmark opening
during the first half of
2016.
The brand has announced its first menswear
collection for the Spring/Summer 2017
season, and has also achieved significant
milestones with store openings in
Amsterdam, Holland; a flagship store in Tel
Aviv, Israel; and other new stores in Mexico,
Indonesia, the United Kingdom (two new
stores), China, Nicaragua, Hong Kong, Italy,
Saudi Arabia, Russia, and more.
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Image from
Oysho’s Soft
Basic campaign.
Oysho has continued to develop its store
image, strongly linked with the concept of
a woman’s healthy lifestyle, in particular
the fusion of sport and women’s fashion.
Of note is the support the brand has given
to Spain’s female Olympic gymnastics
team, which achieved a silver medal at
the Olympic Games held in Rio de Janeiro
in August this year. The brand has also
continued with its initiatives Free Yoga by
Oysho in different cities around the world.
Oysho has recently launched a line of Soft
Basics which depicts a wide range of size
options and designs in lingerie.
The brand has seen various important new
stores launched in Calle Corso Vercelli in
Milan, Italy; in the Times Square mall in
Hong Kong, China; and Calle de Tetuán in
Seville, Spain; with a new store concept
that has also launched in countries such
as Belgium, Panama, Jordan, Russia and
South Korea.
All of these stores have launched their
Olympic collection, which has introduced
the latest advances in technical fabrics,
blended with an original approach to
fashion inspired in cities that have hosted
the Olympic Games over the years such as
Los Angeles, Seoul and London.
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Zara Home has also been extremely active
following the introduction of its new store
image, which combines larger spaces with
light wood and more natural light.
In terms of retail, in September the brand
started a new line of products, Laundry,
which offers a selection of washing liquids,
softeners and ironing liquids that have
been specially selected and designed to tie
in with the defining characteristics of Zara
Home.
The brand has launched a new digital
magazine called The Journal, with a new
edition every two weeks: another example
of the integration of bricks-and-mortar
stores and the digital world. It engages in
a 360-degree strategy involving all of the
brand’s departments, including store staff,
who play a vital role in the publication. Each
edition of the magazine is dedicated to a
particular category of products. Store staff
receive thorough training on every product,
its materials, quality and characteristics,
as well as recommendations for use and
special features in order to offer enhanced
service to customers.
All of these new products were offered in
new stores opened during the period in
question, including the store in Nanning,
China; Garosu Street in Seoul, South Korea;
and the Mall of Africa in Johannesburg,
South Africa; as well as in other countries
including Japan, Belgium, the United
Kingdom, Austria, Jordan, Serbia, Sweden
and Indonesia.
Zara Home has opened its first stores in South Africa
( p i c t u re d ) a n d S e r b i a d u r i n g t h e f i r s t q u a r te r o f t h i s ye a r.
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Next week, Uterqüe will open its new
store concept in Braga, Portugal, while its
support for the world of art continues in the
form of its collaboration last week with the
Madrid Gallery Weekend.
Uterqüe’s new store image is closely linked
with art, and is inspired by the Mid-Century
movement, evoking the aesthetics of the
1950s with a modern twist. Suspended
ceilings expand store spaces with the
aim of offering a welcoming atmosphere
in which sustainability is the central
theme, with LED lighting throughout and
centralised energy saving programme.
Apart from the inauguration in Portugal
next week, this new image is due to be
launched in new stores in Spain, Mexico,
Poland and Ukraine.
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online SALES
EXPASION
At the same time, the Group has continued
to expand its online retail offering to 11
countries during the first six months
of 2016: Bulgaria, Croatia, Slovakia,
Slovenia, Estonia, Finland, Hungary, Latvia,
Lithuania, Malta, and the Czech Republic,
meaning that the brand is now present in
39 markets (see Annex). In this respect,
it is very much worth mentioning the new
sustainability section featured on zara.com,
which not only includes descriptions of the
Group’s environmental and social policies
but also offers new customer services such
as the collection of customer’s unwanted
clothing in areas where this option is
available.
Inditex´s online stores for all brands are
due to launch in Turkey on 5 October.
Payment via
mobile phone
In line with this development, in September
Inditex launched mobile phone payment
in all of the Group’s stores in Spain, with
the objective of gradually extending the
service to other countries. This new service
is available to customers both in the form
of online apps for eight of Inditex’s brands
and a specific app for the whole Group
called InWallet, which users can download
from the platform serving their respective
operating system. All of the Inditex Group’s
apps – Zara, Pull&Bear, Massimo Dutti,
Bershka, Stradivarius, Oysho, Zara Home
and Uterqüe – appear under the name
Wallet. These apps, along with InWallet,
allow customers to fully manage their
shopping receipts on and offline, doing
away with the need for paper receipts.
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INDI
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Social &
Environmental
Social programmes
during the first half of
2016
Activity during the first six months of
the year has also included work on the
Group’s social initiatives. In particular,
the period saw openings of various
stores in Igualada and Ferrol as part
of thefor&from initiative to integrate
people with disabilities. These two
new stores take the project total to 11
establishments.
One of the project’s stores was opened
in Igualada in Barcelona, Spain in April
under Massimo Dutti and in collaboration
with the non-profit organization Moltacte.
The store employes 15 people with
disabilities.
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6
Pull&Bear store in Ferrol from the for&from
integrate people with disabilities.
The other store was opened in Ferrol last
week, the 11th store to be opened as part
of this project. The Ferrol store is under
Pull&Bear, and is run in collaboration
with the Galician Confederation for
People with Disabilities (Confederación
Galega de Personas con Discapacidade,
COGAMI).
project
Mexico City and New York), facilitating
the integration of more than 800 people
into the labour market.
During the first six months of the year,
the Group has also donated funds to
rescue operations and humanitarian
aid for victims of the earthquakes in
Ecuador and Italy that took place in April
and August respectively. The Group has
contributed €200,000 and €1 million
to these two causes respectively, by
means of various organisations including
Cáritas and the Red Cross, with funds
mainly targeted at medical assistance for
the injured, rescue operations involving
trained dogs, psychological and social
support for the effected population, and
mobile kitchens serving people displaced
from their homes.
Another highlight is developments in
the Salta Mundo programme, which
aims to integrate people on the edge of
social exclusion into the labour market
through the Group’s stores. In July,
the project added São Paulo, Brazil to
the list of cities where this initiative is
being developed. The programme has
now been established in other 10 cities
(Madrid, Barcelona, Athens, Berlin,
London, Lisbon, Paris, Milan, Warsaw,
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to
Also over the period, in April, Inditex’s
Chairman, Pablo Isla, and the Chancellor
of the Comillas Pontifical University
ICAE-ICADE, Julio L. Martínez, signed a
collaboration agreement governing the
creation of the Chair of Refugees and
Forced Migrants. The Chair will support
collaborative programmes involving the
University and non-profit organisations
working in the sector, promoting academic
research in the sphere of migration to be
applied in the field to support refugees
and also to seek to raise awareness of the
issues.
Inditex Chairman and CEO
Pablo Isla with Chancellor
of the Comillas Pontifical
U n i ve r s i t y,
The Chair will focus specifically on
the incorporation, shelter and social
integration of refugees in Spain and
Europe.
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Start of the
second half of 2016
Between 1 August and 18 September
2016, sales in local currencies in stores
and online have grown 13%.
In line with the proposal approved by the
Shareholders’ Meeting held on 19 July, on
2 November 2016 payment will be made
of the ordinary supplementary dividend
and extraordinary dividend, to a total gross
sum of €0.30 per share. This gives a total
dividend of €0.60 per share corresponding
to the financial year 2015.
For more information:
Department of Communication and Institutional Relations
+34 981 185 400
comunicacion@inditex.com
www.inditex.com
ı 17 ı
Annex
Global online sales platform
(to 31 July 2016; in bold, online stores launched in the year 2016)
Australia
Zara Home
Austria
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Belgium
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Bulgaria
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Canada
Zara, Massimo Dutti, Zara Home
China
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho
Croatia
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Czech Republic
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Denmark
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Estonia
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Finland
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
France
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Germany
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Greece
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Hungary
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Ireland
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Italy
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Japan
Zara, Zara Home
Latvia
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Lithuania
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Luxembourg
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Malta
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Mexico
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home
Monaco
Zara, Pull&Bear, Masimo Dutti, Zara Home, Uterqüe
Netherlands
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Norway
Zara, Massimo Dutti, Zara Home
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New Oysho store on
C a l l e Te t u á n , S e v i l l e ,
Spain.
Poland
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Portugal
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Romania
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Russia
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Slovakia
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Slovenia
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
South Korea
Zara
Spain
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Sweden
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Switzerland
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
Taiwan
Zara
United Kingdom
Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe
United States
Zara, Massimo Dutti, Zara Home
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