MacGregor Black’s Post

Inditex, the parent company of ZARA SA, reported a 7.2% rise in sales, reaching £15.2 billion (€18.1 billion) for the first half ending 31 July, driven by the "design and quality" of its fashion offerings. During the first half, the company carried out openings in 34 markets. At the end of the period, Inditex operated 5,667 stores. Gross profit up 7.5% to €10.5 billion. Gross margin up 19 bps to 58.3%. EBITDA up 8.1% to €5 billion. Net income up 10.1% to €2.8 billion. Óscar García Maceiras, CEO of Inditex, said: "The design and quality of our proposition and the experience we offer our customers are, together with the efficiency and increasing sustainability of our operations, the keys to the solidity of these results. Looking ahead, the company said it continues to see "strong" growth opportunities. It will attempt to "continually improve the fashion proposition, enhance the customer experience, increase its focus on sustainability and preserve the talent and commitment of its people." Read full press release: https://lnkd.in/djpTNA-z

In the 2010s Inditex, the world’s largest fashion retailer, surged ahead of its rivals by keeping the bulk of its production close to Europe, its biggest market. That allowed the firm to keep inventories low and respond quickly to fashion trends. These days competition from Shein, a Chinese e-commerce firm, is squeezing much of the sector. But Inditex, whose brands include Zara and Bershka, is bucking the trend again. It has unified its online and shop-based operations better than its rivals thanks to clever radio-frequency trackers, an in-house digital platform and a group-wide inventory database. Its nimbleness is paying off. During the first quarter of 2024 sales rose 7.1% year on year, while net income climbed by 10.8%. Analysts expect similarly strong results when the firm reports second-quarter earnings on Wednesday. Its spring and summer collections appear to have sold well: interim results showed that sales rose 12% year on year between May 1st and June 3rd. -Economist.

Shein’s fast-fashion revenue is ‘a lot more’ than $30 billion annually, key retail partner says “Shein is the fastest growing fashion retailer in the world, if not the biggest fashion retailer in the world” fast-fashion company’s sales are “a lot more” than the $30 billion it reportedly brings in annually KEY POINTS ·        The CEO of brand management firm Authentic Brands Group said Shein’s annual revenue is “a lot more” than $30 billion annually.  ·        As a private company, Shein does not disclose its financials, but Authentic’s CEO Jamie Salter is familiar with them because of a partnership he inked with the company last summer. ·        If Shein’s sales are “a lot more” than $30 billion annually, it would put the company’s sales in line with those of Zara’s owner Inditex and above those of H&M.

"THE CORE COMPETENCE AND COMPETITIVE ADVANTAGE OF ZARA " Zara, a renowned Spanish fashion retailer, is a flagship brand of the Inditex group. Founded in 1974, Zara has become a global icon for its fast-fashion approach, seamlessly blending design, production, and retail operations. With a commitment to staying ahead of fashion trends and a vertically integrated supply chain, Zara has redefined the retail landscape, offering affordable yet chic clothing to a diverse and fashion-forward customer base worldwide. The VRIN frame work assesses a firm's competitive advantage based on four key criteria, Value,Rarity,Inimitability and non-sustainability. Let's analyze the competitive advantage using VRIN framework. Value: Zara's fast-fashion model, vertically integrated supply chain, and emphasis on customer trends contribute significant value. Its ability to quickly interpret and respond to fashion trends gives it a competitive edge. Rarity: Zara's unique approach to fashion, combining speed with quality, is relatively rare in the retail industry. The company's agile supply chain and production processes are distinctive and not easily replicated. Inimitability: Zara's inimitability stems from its vertically integrated operations, enabling control over the entire supply chain. The seamless coordination between design, production, and distribution is challenging for competitors to replicate. Non-substitutability: Zara's combination of speed, efficiency, and fashion-forward designs creates a unique value proposition that is not easily substituted by other fashion retailers. The brand has built a loyal customer base that appreciates its distinctive offerings. Zara's core competencies lie in its ability to create and deliver fashion quickly through a vertically integrated supply chain, and its competitive advantages are derived from the rarity, inimitability, and non-substitutability of these capabilities within the retail industry. #LubiyaPpeter #Zara #MBA22_24 #MBAFebruary2024 #stategicmanagement #Druva #Ekta

'💪 Zara owner Inditex overcomes washout summer as profits shine ☀️ Zara owner Inditex first-half profit has risen 10% 📈 as sales jumped 7.2%, driven by strong spring/summer 24 sales 🛍️💰 #RetailNews #Inditex #ProfitGrowth #Zara Learn more here: www.databoutique.com 📊💼 #BusinessData #RetailInsights' by Retail Gazette about ZARA ITALIA

"Decoding Zara's Swift Success: A Brief Case Study on Fast Fashion's Trailblazer 🧑💼👗 Zara, a global fashion powerhouse, has revolutionized the retail landscape with its unique approach to fast fashion. This post will delve into the key factors that have contributed to its remarkable growth and success. Stay tuned to learn more about Zara's strategic moves, innovative practices, and how they continue to redefine the fast fashion industry! 🌐🌟"

Inditex, the fashion group behind Zara and other major brands, continues to thrive. -> Despite a slower sales growth of 7% to €8.2 billion in Q1, net profit still rose 11% to €1.3 billion. -> This solid performance comes as customers respond positively to their new collections, driving a 12% sales increase from May to early June. Inditex is broadening its presence, opening stores in 28 new markets, including its first Zara in Uzbekistan, and reopening in Ukraine. Online, Massimo Dutti debuted on JD. com in China, with live shopping coming to Europe and the U.S. Investing in the Future To support its growth, Inditex will invest €900 million annually over the next two years to enhance logistics. Operating in 214 markets, the company is well-positioned for further expansion in the fragmented fashion retail sector. #Inditex #Fashion #GlobalGrowth**

Spanish fashion retailer MANGO reported its highest-ever half-year revenue, which surpassed €1.5bn (£1.3bn) in the six months to 30 June 2024. CFO Margarita Salvans explains what has been driving its growth and what the business has in store for future expansion. Read more below. #fashion #fashionnews #retail #retailnews #Mango

In the US, MANGO often plays second fiddle to rival Spanish brand Zara. This is mostly because Mango has fewer stores and isn’t quite as well known. While Mango is a fast fashion player, it is a somewhat slower fast fashion player than retailers like Zara and Shein. It has more of a focus on classic styles and relies less on constant drops of new assortments to drive sales. Its aesthetic is elegant with a mix of elevated everyday products and bold statement pieces. From our data, Mango has built a good reputation for reasonable quality at good price points and puts a lot of focus on areas like fit, cut and fabric. I enjoyed chatting with Julia Waldow for her Modern Retail article about the expansion plans of the fashion chain. Link to article in the comments. #retail #retailnews #fashion #apparel #expansion

Retail Scoop #3 This week's Retail Scoop is about Inditex one of the world's largest fashion retailers, with a portfolio of 7 brands and over 5,500 stores globally. As of the latest fiscal year, the company reported revenues exceeding €35 billion. Zara, the flagship brand, contributed €26.05 billion, accounting for 72.5% of the company's total revenue. Inditex's success is not merely in its revenue figures but also in its ability to maintain operational efficiency across its extensive global network. It has consistently demonstrated exceptional operational efficiency year on year. In the year ending 2023, Inditex achieved a remarkable Return on Capital Employed (ROCE) of 39%, while H&M, its closest rival, achieved a ROCE of 12%. But what does this mean, and why is it important? ROCE measures a company's ability to generate profits from the capital invested in its business. In simple terms, it shows how efficiently a company uses its resources to generate earnings. Another important performance indicator is stock turnover. Inditex is widely regarded as the gold standard in retail operations. With a stock turnover of 4.93 in the last financial year, the Inditex group sells and replaces its inventory approximately 5 times a year, minimizing waste and excess inventory. For comparison, H&M had a stock turnover of 3.08 in the last fiscal year. And for History Buffs: Inditex traces its roots back to 1963 when Amancio Ortega founded the company known as Confecciones Goa in Spain. The pivotal moment came in 1975 with the launch of the Zara brand, which revolutionized the industry by offering trendy clothing at affordable prices with rapid turnover of inventory. Over the years, Inditex expanded its portfolio with the addition of Massimo Dutti, Oysho, Bershka, Stradivarius, Pull&Bear, Uterqüe, and Zara Home. ZARA SA PULL&BEAR Bershka Please follow for more retail scoops. #fashion #retail #analysis