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☆ Inditex can afford to start sharing its cash pile
▼ + stars: | 2023-09-13 | by ( ) www.reuters.com time to read: +2 min

An employee arranges clothes at one of the largest Zara stores in the world, in Madrid, Spain, April 7, 2022. REUTERS/Juan Medina/File Photo Acquire Licensing RightsLONDON, Sept 13 (Reuters Breakingviews) - Marta Ortega is facing a test on Inditex’s (ITX.MC) bulging cash pile. In the same period, Inditex delivered 2.5 billion euros of net profit, up 40% year-on-year. Still, growing profits mean its cash pile will only get larger. Net cash is expected to balloon to 12 billion euros by year-end, LSEG data show.

Persons: Juan Medina, Marta Ortega, Massimo Dutti, Inditex, Ortega, Inditex’s, Aimee Donnellan, BoE, Lisa Jucca, Streisand Neto Organizations: REUTERS, Reuters, Reuters Graphics Reuters, X, Treasury, UBS, Warner Bros Discovery, Thomson Locations: Zara, Madrid, Spain, Asia

Another 25% will come from "next-generation" materials in which the group is investing, and the remaining 10% from other sustainable sources, the company said. The new targets come as the European Commission is drawing up regulations to make clothing retailers pay for the waste they produce, arguing that fast-fashion companies "encourage customers to shop impulsively and incentivise purchasing larger quantities of clothes". Inditex previously had targets to use more sustainable cotton, linen, polyester, and fibres made from wood pulp, but did not have an overall goal for recycled fibres. Shoppers walk past a Zara clothes store, part of the Spanish group Inditex, in Las Palmas de Gran Canaria, Spain, December 13, 2022. REUTERS/Borja Suarez/File Photo"Moving forward on sustainability is natural for us," said Inditex Non-Executive Chair, Marta Ortega, in brief comments to investors at the AGM.

Persons: Inditex, Oscar Garcia Maceiras, Borja Suarez, Marta Ortega, Ortega, Adam Gofton, Corina Pons, David Latona, Helen Reid, Andrei Khalip, Mark Potter, Sharon Singleton Organizations: Companies Zara, European Commission, Las Palmas de, Las Palmas de Gran Canaria, REUTERS, Mackenzie Investments, Thomson Locations: MADRID, LONDON, Zara, Spanish, A Coruna, Spain, Las Palmas, Las Palmas de Gran, Toronto, Inditex, Madrid, London

Amancio Ortega set up the first Zara store in A Coruna in the north west of Spain in 1975. Marta Ortega started from the bottom at Inditex, stacking shelves at a Bershka store when she was 23. Ortega, whose father owns 59.3% of Inditex, has mainly worked in the background, leaving the spotlight to the CEO. "We feel that Marta Ortega has repositioned Zara slightly upwards," said Patricia Cifuentes, analyst at the investment banking arm of Spanish investment firm Bestinver. "Reinforcing that Zara sells fashion, not just clothes, has allowed Inditex to increase prices and protect the margins amidst the inflationary storm."

☆ Investors punish Zara owner Inditex over spending plans
▼ + stars: | 2023-03-15 | by ( Corina Pons | ) www.reuters.com time to read: +4 min

As the cost of making garments increased, H&M took a profit hit while Inditex was able to pass on costs to shoppers. But higher expected capital expenditure for 2023, of 1.6 billion euros, surprised investors, sending Inditex shares down more than 5% by 1140 GMT. An Inditex logo is seen at the entrance of a Zara factory, the headquarters of Inditex group, in Arteixo, northern Spain, March 9, 2016. Inditex closed stores in mainland China at double its average rate, shutting a fifth of its shops there in 2022. Meanwhile Inditex plans to continue expanding in the United States, with at least 30 new projects planned from 2023 to 2025.

☆ Zara owner Inditex invests in tech to speed future sales
▼ + stars: | 2023-03-15 | by ( Corina Pons | ) www.reuters.com time to read: +3 min

Inditex has extended its lead over Swedish rival H&M (HMb.ST), in part because of a less price-sensitive customer base. As the cost of making garments increased, H&M took a profit hit while Inditex was able to pass on costs to shoppers. In-store and online sales rose 18% to 32.6 billion euros ($34.99 billion) from 2021 and were 15% higher than in 2019, before the pandemic hit. Excluding Russia, where Inditex stores have been closed since the Ukraine conflict started just over a year ago, sales in that period were up 17.5% in constant currency terms. Inditex also delivered a surprise, but by hiking capital expenditure to 1.6 billion euros from 1.1 billion euros previously.

☆ Zara owner Inditex sees 2023 sales keep pace, but capex plans disappoint
▼ + stars: | 2023-03-15 | by ( Corina Pons | ) www.reuters.com time to read: +2 min

In-store and online sales for the world's biggest fashion retailer rose 18% to 32.6 billion euros ($34.99 billion) from 2021 and were 15% higher than in 2019, before the pandemic hit. The pace of sales continued in the first six weeks of Inditex's current fiscal year to Jan. 31, 2024. Between Feb. 1 and March 13, Inditex said sales jumped by 13.5% from the same period a year earlier. Excluding Russia, where Inditex stores have been closed since the Ukraine conflict started just over a year ago, sales in that period increased by 17.5% in constant currency terms. But Inditex surprised investors with a hike in capital expenditure to 1.6 billion euros from 1.1 billion euros in the previous year, a higher level than expected by the market.

☆ Zara owner Inditex's profit jumps in Marta Ortega's first year in charge
▼ + stars: | 2023-03-15 | by ( Corina Pons | ) www.reuters.com time to read: +2 min

MADRID, March 15 (Reuters) - Zara owner Inditex (ITX.MC) on Wednesday posted a 27% increase in net profits in 2022 as sales exceeded pre-pandemic levels in the first full year since Marta Ortega, daughter of founder Amancio Ortega, took over as company chair. Between Feb. 1 and March 13, Inditex said its sales jumped by 13.5% from the same period a year earlier. The 2022 revenues were in line with analysts' expectations as the company benefited from shoppers' appetite for fashion as COVID-19 lockdowns ended. The results may also lessen investor doubts about Marta Ortega succeeding the veteran Pablo Isla as non-executive chair in April, in a generational handover that began a decade ago when her father retired. Also on Wednesday, rival H&M (HMb.ST) reported a 12% increase in net sales for its December-February period.

☆ Zara owner Inditex's profit jump in first year with Marta Ortega at helm
▼ + stars: | 2023-03-15 | by ( ) www.cnbc.com time to read: +1 min

Zara owner Inditex on Wednesday posted a 27% net profit increase in 2022 as sales exceeded pre-pandemic levels in the first full year since Marta Ortega, daughter of founder Amancio Ortega, took over at the helm of the company. In-store and online sales for the world's biggest fashion retailer reached 32.6 billion euros ($34.99 billion), 18% more than the 27.71 billion euros posted last year and 15% higher than in 2019, before the pandemic hit. The company net income soared to 4.1 billion euros ($4.40 billion). The fashion giant revenues were in line with what analysts expected as the company benefited from shoppers' appetite for fashion in the post-Covid period. Inditex's strong results will appease initial investor concerns about Marta Ortega succeeding the veteran Pablo Isla as non-executive chair in April, in a generational handover that began a decade ago when her father retired.

PARIS, Dec 9 (Reuters) - Antoine Arnault, LVMH chairman Bernard Arnault's eldest son, was on Friday named chief executive of family holding company Christian Dior SE, replacing veteran executive Sidney Toledano and stirring speculations of succession at the group. Christian Dior is a listed company that owns the bulk of the Arnault family's stake in LVMH (LVMH.PA) , the world's largest luxury group. At LVMH, Antoine Arnault, a business school graduate and a board member since 2006, oversees the group's communications and environmental issues, driving efforts to shore up its reputation. [1/4] Antoine Arnault, CEO of Berluti, attends the Fall/Winter 2019-2020 collection show for fashion house Berluti during Men's Fashion Week in Paris, France, January 18, 2019. Alexandre Arnault, 30, is an executive at Tiffany & Co. while Frederic Arnault, 27, is chief executive of TAG Heuer.

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