Skip to main content
Hamburger Menu Close

Advertisement

CNA Lifestyle

Inditex's 2020 net profit falls 70per cent as pandemic keeps many shops closed

Zara owner Inditex reported on Wednesday its net profit fell 70per cent in 2020 to 1.1 billion euros (US$1.31 billion), a steeper drop than expected, after a year of global lockdowns and dampened demand caused by the coronavirus pandemic.

Inditex's 2020 net profit falls 70per cent as pandemic keeps many shops closed

People wait observing social distancing oustide a Zara shop in Paris as France softens its strict lockdown rules during the outbreak of the coronavirus disease (COVID-19) in France, May 11, 2020. REUTERS/Benoit Tessier/Files

MADRID: Zara owner Inditex reported on Wednesday its net profit fell 70per cent in 2020 to 1.1 billion euros (US$1.31 billion), a steeper drop than expected, after a year of global lockdowns and dampened demand caused by the coronavirus pandemic.

Fourth quarter net profit fell 53per cent to 435 million euros out of sales of 6.3 billion euros as restrictions on shopping came back into force across much of Europe around Christmas, the company said. Around 15per cent of its shops worldwide were still closed due to COVID-19 restrictions as of March 8, Inditex said in a statement.

Six analysts polled by Refinitiv expected a quarterly net profit of 602 million euros, while a poll of 24 analysts forecast full-year net profit at 1.3 billion euros.

The Spanish fast fashion retailer, which operates 6,829 stores worldwide, said total sales in 2020 were down 28per cent from last year at 20.4 billion euros, as an unprecedented 77per cent of online sales increase partly offset the pandemic's negative effects.

(Reporting by Victoria Waldersee, Editing by Inti Landauro)

Source: Reuters

Advertisement

RECOMMENDED

Advertisement