Inditex (Zara): Profits more than double in 2021 despite fewer stores and reduced staff

ITX Hellas (formerly Zara) of the Spanish multinational group Inditex showed a significant increase in sales of 39% in 2021 (01.02.2021 – 31.01.2022).

Although it failed to reach 2019 levels, as stores remained closed for about 4 months in 2021 due to covid restrictions, the consolidated financial report states that sales were satisfactory.

Specifically, for the year ended January 31, 2022, Inditex turnover in the Greek market was 457.5 million euros when during the year 01.02.2020 – 31.01.2021 the total turnover of the 8 companies had amounted to 328.7 million euros. In 2019, the last “normal”  year, sales had reached 550.8 million euros, while in 2018 they were at 517 million euros.

Pre-tax profits more than doubled in 2021 topping 29.5 million euros when last year they were around 14.57 million euros. Profits after taxes also more than doubled reaching 21.11 million euros from 10.77 million euros. ITX Hellas management considers that sales in 2022 will recover significantly and will approach 2019 levels.

Doubling investments

Last year, the Inditex group made investments of 18.3 million euros, both on leased and privately owned outlets. This is almost double compared to 2020, a year in which the multinational’s investments in Greece stood at 9.8 million euros.

Network restructuring

ITX Hellas branch network, on January 31, 2022, numbered 157 stores compared to 162 stores on January 31, 2021 and 165 on January 31, 2020. In 2021 the company had an average of 3,150 employees from 3,308 in 2020 and 3,956 in 2019.

The merger

Inditex diversified its strategy in the Greek market, last year, based on the restructuring plan followed worldwide. It proceeded to merging all its subsidiaries in Greece (Massimo Dutti, Bershka, Oysho, Pull & Bear, Stradivarius, Zara Home and Uterque) under Zara Hellas. On June 1, 2021, the company was renamed ITX Hellas.

The merger was deemed “appropriate and advantageous” in order to reduce operating costs and achieve synergies in order to cope more effectively with rising competition.