Inditex reports drop in FY20 sales and profit

Inditex Inditex has announced that the company generated net sales of 20.4 billion euros in FY20, a year dominated by the Covid-19 pandemic, while the company’s online sales registered growth of 77 percent in local currencies, to over 6.6 billion euros, with growth of over 100% during certain periods of the year. The group was able to reach a net profit of 1.1 billion euros in FY20.

Commenting on the results, Inditex’s Executive Chairman, Pablo Isla, said in a statement: “Inditex as a company is stronger today than it was two years ago, with a unique business model and a global, flexible, digitally integrated and efficient sales platform, which places us in an excellent position for the future.”

Inditex further said that store and online sales in local currencies declined by 15 percent between 1 and 28 February, with 21 percent of the stores closed and between March 1 and March 7, with 15% of stores closed, sales contracted by 4 percent. Excluding the markets of Germany, Brazil, Greece, Portugal and UK, sales registered growth of 2 percent.

Inditex’s board of directors will submit a motion for a 0.70 euros per-share dividend at the annual general meeting scheduled for July. The proposed payment will consist of an ordinary dividend of 0.22 euros and an extraordinary dividend of 0.48 euros per share, divided into two equal payments.

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