The Loss Of Inditex Group In Q2 2020 Amounted To €195 Million
The net loss of the Spanish Inditex Group, one of the world's largest clothing and footwear retailers (such brands as Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho), in the first half of the 2020-2021 financial year (February 1 — July 31) amounted to 195 million euros against a profit of 1.55 billion euros a year earlier, the company said.
The company's revenue for the reporting period decreased by 37% year-on-year to 8.033 billion euros. At the same time, revenue expressed in national currencies in the regions where we operate decreased by 11%.
EBITDA for the first half of the year reached 1.48 billion euros, which is twice as low as in February-July 2019-20 fiscal year.
"Inditex's performance in the first half of the year was significantly affected by COVID-19 and temporary store closures. Many points opened by the end of July, but restrictions are still present. Online sales grew strongly (by 74%)," the press release explains.
The company's shares on the Madrid stock exchange are growing at the same time in price by more than 5%.
Inditex Corporation was founded in 1985. The company wons stores under the brands Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe.
As a result, the Group reported a net loss of €195 million in the first-half; it would have reported a first-half net profit of €39 million when excluding the previously announced €308 million provision for the advanced store digitalisation programme. Second-quarter EBITDA topped the one billion mark to put first-half consolidated EBITDA at €1.5 billion.