Bershka to launch in the UK

Yet another Inditex clothing brand is set to launch in the UK and Ireland. Next month Bershka, a brand that targets 15-27 year olds, will open it's first UK shop in Newcastle's MetroCentre. Its next shop will open on London's Oxford Street, next to Mango. Ireland will follow suit in 2005.

Bershka currently has 275 shops worldwide.

www.inditex.com
20-09-2004

Zara A Retailer's Dream

While its rivals start planning their lines on average nine months before they hit the shelves, Zara has a reputation for instant reaction to fashion trends and rapid restocking of stores to meet demand on items that are hits.
It's also not afraid to pull items from shelves and cancel ones that aren't selling. Zara can make a new line, from the initial concept to when it arrives in the shops, in just three weeks.

But how did this once-tiny lingerie company, based in the small northern Spanish town La Coruna, grow to become one of the biggest -- and most successful -- players in its game? The secret, according to CEO Jose Castellano, is its reliance on communication, and the way it uses existing technology to take that owns Zara, is still located on the outskirts of La Coruna in the Galicia region.

Its design-and-manufacturing headquarters is a sprawling industrial complex with a vast network of underground tunnels lined with conveyor belts that transport clothing from one part of the complex to another. Almost all of Zara's clothes are made here, right from the basic fabric dying stage. "Technology in this company is important and will be more important in the future," says Castellano. The technology we use is mainly information technology and the communication between the shop managers and the design team here in the headquarters."

Designers are in daily contact with store managers, discussing which items are most in demand and which aren't. This, supported by real-time sales data, allows the designers to action repeat orders and create fresh designs, and from La Coruna they are shipped directly to the stores, eliminating the need for expensive warehouses. Zara lines rarely stay on the shelves for more than a month.

And, according to Marie Claire editor Marie O'Riordan, the formula works. "With other high-street retailers, the risk is buying something that you'll bump into somebody wearing the same thing, and it spoils the effect," she says.
"With Zara, because the stock turnover is so fast, you have to get there on day one. It tends to sell out two days later so you have a real chance of being a little bit exclusive, which is quite unusual for a high street."

www.zara.com
27 July 2004

Zara Introduces Homeware

Zara is bringing its homewares to the UK at its Brompton Road store in Knightsbridge, London, that is to open this November. Towels, duvet covers, crockery and throws will be sold from around 3,000sq ft of the new four-floor store.
For more information see www.zara.com

9 October 2003

Zara to Launch Electronic Gift Vouchers

Spanish high street multiple Zara is to launch an electronic gift voucher system when its transitional autumn product begins arriving in stores in August and September.

The credit card-sized vouchers are fitted with a computer chip and will debit the value of the purchase when swiped, leaving any remainder on the card.

They are designed to be more user-friendly than the conventional paper vouchers.

Zara is also set to begin selling garments with UK sizes printed on the label. The tags currently display European, US and Mexican sizes. Inditex UK managing director Mike Shearwood said the size of its UK operation now justified its inclusion on the country specific labels.

23 June 2003

Inditex continues growth

Inditex posted a 29 per cent year-on-year jump in full year net profit to GBP 300.6 million but revealed slow December sales. The Spanish fashion giant, famous for its Zara brand also operates Pull & Bear, Massimo Dutti, Bershka, Stradivarius and Oysho. The company said net sales for last year climbed 22 per cent to GBP 2.7 billion last year.

Same-store sales climbed by 11 per cent year-on-year. Inditex also announced plans to open between 260 and 315 new stores this year with investment of 340 to 370 million pounds.

The retailer added its performance was hampered by woes in Venezuela where it was forced to close nearly two dozen stores and said sales in the Americas fell to 13.2 per cent of total sales from 15.9 per cent in 2001 with that trend seen continuing in 2003.

March 25, 2003
www.inditex.com

Inditex invests in Dutti-brand

Succesful Spanish fashion group Inditex announced it will invest more than 5 million euro in eight new stores for its Massimo Dutti brand in 2003. The Galicia-based giant, whose other banners include Zara, Bershka, Oysho and Stradivarius, said the new outlets - in Braga, Gondomar, Arrabida Shopping, Montijo, Cascais, Norteshopping, Caldas da Rainha and Vila Real - will boost its network in Portugal to 40.

Massimo Dutti, with more than 200 stores located in twelve countries, is the result of a universal design which appeals to both women and men. It presents a complete variety of lines, ranging from the more urban and sophisticated to the more sporty.

February 20, 2003
www.inditex.com

Inditex to open over 250 new stores

The chief executive of Spanish fashion giant Inditex, owner of the successful Zara stores, on Monday reaffirmed its profit and sales growth target of twenty per cent for 2003 and confirmed plans to open between 250 and 300 new stores.

Jose Maria Castellano, chief executive, said the group will open up to eighty new outlets under its flagship Zara banner with the rest split between its other brands such as Pull & Bear, Massimo Dutti, Bershka, Stradivarius and Oysho.

"We expect to open between 250 and 300 shops, but as of today we can't give an exact count," he told Spanish newspaper ABC in an interview. He added the expansion plans are focused on the main European markets such as Germany, Italy, Britain, France and Spain as well as Denmark, Sweden and the Netherlands.

Castellano also announced the company has no immediate plans for a major drive into the profitable US market where it will operate eleven Zara stores by the end of this year.

www.zara.com

January 28, 2003

Generous Inditex can afford it

Spanish textile giant Inditex has announced it is donating six million euros to the victims of the Prestige. In a press release the company, which owns the successful Zara-chain, expresses its “deepest solidarity with the victims of the Prestige disaster”. The company can clearly afford it, which goes to show from the Q3 results the group presented at the same time.

Net sales of the Inditex Group for the third quarter of 2002 reached 2,758.1 million euro in the first nine months of 2002, a 25.8 % increase over the same period last year. This result is due to the like-for-like sales growth as well as to the rising number of existing stores. Net income increased by 31 %, to 274.1 million euro.

During the first nine months of 2002 approximately 400 million euro has been incurred and 199 new stores have been opened. The expected number of net openings for the full year 2002 is between 265 and 283 stores. In the time elapsed since the end of 2001, the Group has created 3,338 new jobs, going from 26,724 employees to 30,062 ones.

December 17, 2002
www.inditex.com

First Zara store in Switzerland

Spanish fashion giant Inditex will open its first stores in Switzerland as the clothing chain's ambitious international expansion drive gathers pace. The company will open flagship stores in Geneva for its Zara, Massimo Dutti and Bershka brands ahead of the opening of other outlets in other cities across the country.

Inditex it’s expansion into Switzerland over a year ago. Zara is located in the main shopping area in Geneva, namely in the building known as the Clock Tower, in the Place du Mollard. The Zara store’s retail area measures 1,700 square metres.

Over the past few months Inditex, whose first half net profit rocketed to GBP 75 million, has announced plans to open its first Zara stores in Russia, Sweden and Singapore.

October 30, 2002
www.inditex.com

Inditex to launch Zara in Russia

Inditex has signed a cooperation agreement with Stockmann, Finland's number one retailer, for the roll-out of Zara stores in Russia. The Finnish retailer and department store operator Stockmann has agreed three Zara stores in two countries next year. The company said in a statement it will open two Zara outlets in Finland and one in Russia, although it did not disclose the financial terms of the agreement.

La Coruna-based Inditex will be able to take advantage of Stockmann's experience in the Russian and Estonian markets, where the shopping centre specialist operates centres in Moscow and Tallinn respectively.

Helsinki-based Stockmann, which launched the Zara brand in Finland with the opening of a first store last April, will next spring open further two Zara stores in Turku and Helsinki.

The first Russian Zara store will open in spring next year, cover 1,800 square metres of selling space and will be located in Moscow's new Mega Shopping Mall, developed by Swedish furniture giant Ikea and presently under construction.

www.inditex.com
October 23, 2002

Zara to open doors in Sweden

Spanish fashion giant Inditex is to open its first Zara store in Sweden - home of fierce rival Hennes & Mauritz. The company announced it has signed a lease with Swedish property company Hufvudstaden AB for a 1,600-square-meter space that is located on the corner of Hamngatan, one of Stockholm's main thoroughfares, and that it will open the store in "the coming year." Hufvudstaden said in a separate press release that Zara will move into the site during the autumn of 2003 and that the lease is for 12 years.
Inditex already operates three stores in Scandinavia, two in Denmark and one in Finland. Furthermore the company is present in the Swedish market with its Massimo Dutti chain.

The company said the new Zara opening is part of its strategy of expanding all its chains across Europe. It said it will soon be opening a new 3,000-square- meter Zara store in London and will be opening its first two Zara stores in Switzerland in the next few weeks.

As for the other chains of the group, Massimo Dutti will soon begin operating in the UK, Switzerland and France; Bershka will enter the Swiss, Dutch and French markets, and Pull and Bear in Germany.

www.inditex.com
October 4, 2002

Inditex launches two new brands in France

Spanish fashion retailer, Inditex is bringing its Massimo Dutti and Bershka concepts to the French market. The first Massimo Dutti store will be opening in October in a shopping centre in the Paris suburb of Boulogne-Billancourt.

Massiomo Dutti is a brand for both men and women that is priced slightly higher than the company’s flagship brand Zara. Bershka is a feminine young women’s brand which will move inot a store in the Franch capital’s Quartier Latin.

Inditex plans to open 50 Massiomo Dutti and Bershka stores in France within a few years. The company added that the launch of these two brands has no influence on the further expansion of Zara in France. This year, Inditex opened five stores, next year a further 10 stores will follow, including the opening of a 2,000 square metre store in the former Marks & Spencer building on Boulevard Haussmann.

www.inditex.com
09-09-02

Inditex to open 250 stores as profits rise

Inditex’s net income increased in 2001 to €340.4 million, 31% more than the previous fiscal year. The Group’s net sales came to €3,249.8 million, an increase of 24%

·Like-for-like sales grew by 9% in 2001, with positive evolution in all geographical areas
·At Fiscal Year End (FYE) the Group had 1,284 stores
·Over the fiscal year, stores have been opened in six new markets: Luxembourg, Iceland, Ireland, the Czech Republic, Jordan and Puerto Rico.
·The proposed dividend comes to €68.6 million

The Inditex Group’s net income for fiscal 2001 rose to €340.4 million, 31% more than the previous year, while consolidated net sales (without VAT) came to €3,249.8 million, an increase of 24% with respect to fiscal 2000.

All margin lines show increases with respect to 2000, as a result of the growth strategy of the group’s chains, the continuity of international expansion and its adapting to market demands. The performance of sales – which grew by 9% like-for-like – and the improvement in cost and inventory management have lead to greater profitability, growing the operating cash flow (EBITDA), operating income (EBIT) and net income more than the net sales. Specifically, EBITDA grew by 35% with respect to 2000, to €704.5 million, and EBIT by 36%, standing at €517.5 million.

The Board of Directors has resolved to propose to the Shareholders’ Meeting the payment of a dividend of €68.6 million, representing a pay-out of 20.1% of net income. The dividend per share amounts to €0.11.

At the end of fiscal 2001 the Inditex Group had 1,284 stores open worldwide, 204 more than in 2000, with a selling area of 659,000 m2, 22% more than the previous year. Of the total number of stores, 515 were located outside Spain and generated 54% of total store sales. Over 2001, six new markets were opened: Luxembourg, Iceland, Ireland, the Czech Republic, Jordan and Puerto Rico.

Among the relevant events occurring during fiscal 2001, the signing of a joint-venture agreement with the Gruppo Percassi for the opening of stores in Italy stands out. In the next few weeks the first Zara store will open in Milan. An agreement was also signed in 2001 for the installation of a new logistics centre for the Zara chain in the Plataforma Logística in Zaragoza, PLA-ZA, with an expected approximate investment of €100 million. Construction will begin in 2002 and it will be operative in the second half of 2003, thus ensuring distribution capacity for the coming years.

Number of staff of the Inditex Group increased by 2,720 employees during fiscal 2001, rising from 24,004 at FYE2000 to 26,724 as at 31 January 2002. This growth is a result of the increase in activity of all the concepts, factories and offices of the Group.

Expected capital expenditure for fiscal 2002 is between €500 million and €550 million, allocated mainly to the opening of new stores, with a forecast for the year of between 200-250 new outlets.

www.inditex.com
21-3-2002

Inditex’s net income increases by 31% in the first nine months of fiscal year 2001
The group increases its forecast for openings for the fiscal year as a whole to 215, to reach 1,295 stores

The net income of Inditex has increased to €208.8 million in the third quarter of fiscal year 2001, 31% more than in the same period for the previous year. For its part, operating income has grown to €308.5 million –35% higher – and operating cash flow to €444.4 million, 34% above the third quarter of 2000. Sales performance, improvement in inventory management and the control of operating costs have favoured the leveraging of the group’s results, which are growing more than net sales. These have increased by 24% in the first nine months of the year, coming to €2,191.7 million.

The increase in sales is due both to the increase in like-for-like sales and to the greater number of existing stores. Estimated investments for the whole of the fiscal year are of between €430 and 450 million, of which approximately €310 million has been invested in the first three quarters. Inditex opened 126 new stores during the first nine months of the fiscal year (58 of these in the third quarter) and foresees ending the year with a total of 1295 stores worldwide.

Of the 215 openings foreseen for the whole year, 135 will be outside Spain. The consolidated balance sheet of Inditex maintains practically the same structure as it showed at the closing of the last fiscal year, with a low level of debt. The volume of financial debt represented 6% of the balance sheet and 11% of shareholders’ funds, compared with 9% and 17% respectively, at the same date in fiscal 2000.
www.inditex.com

Inditex invests into logistics

Inditex will build a logistics centre for its Zara fashion chain in the Platform for Logistics in Zaragoza (PLAZA). This new centre will complement the activity of the centre located in Arteixo (A Coruña), increase the flexibility of the Zara logistics system and contribute to matching the group’s distribution capacity to the pace of growth in its sales worldwide. The chosen location in the capital of the Aragon region offers excellent infrastructures, integrated into an intermodal transport centre. PLAZA will have direct access to the railway and road network, in addition to being located next to Zaragoza airport, which increases its options in the handling of international cargo.

Inditex will invest €87.4 million in the establishment of this new logistics centre, the construction of which will begin next year and which will enter into service in 2003. The centre, with a constructed area of 123,000 m2, will generate around 760 direct jobs and will make use of the latest technologies available in the field of logistics.

With the setting up of this new project, the Inditex group is increasing the number of its platforms of activity in Spain, up until now located in Galicia, Catalonia and the Valencian Community. At the present time, Zara distributes all the products which are sold in its almost 500 stores in more than 30 countries in Europe, America and Asia from its centre in Arteixo. Each store receives new products twice a week, which are shipped by road or air, always in under 35 hours.

The Platform for Logistics in Zaragoza (PLAZA) is a project which takes advantage of the strategic positioning of the Aragon region’s capital and of the transport infrastructures currently available, as well as those foreseen for the immediate future. This platform, which once fully developed will cover an area of more than 6.3 million m2, is located next to Zaragoza airport and on the route of the new high speed train Madrid-Barcelona-France, and will have a link to the Fourth Ring Road, which will give access to the road and motorway networks both of Spain and of Europe.
www.inditex.com

Zara will open its first store in Italy next spring
24-10-2001

Inditex and the Percassi Group set up a joint venture in Italy Inditex and the Percassi Group have set up a joint venture in Italy, with the objective of developing the Zara chain in that country in the next few years. The first fruit of this agreement, which can be extended to the rest of the Inditex group’s chains, will be the opening of a Zara and Oysho megastore in the most important shopping area in Milan during the first half of next year.

As regards their respective stakes, Inditex holds 51% of the joint venture and the remaining 49% is held by Percassi. Both partners expect to gain advantages from the sum of their experience in the fashion retail sector. The Italian group, Percassi, in addition to being present in the retail sector with close to 120 stores, has significant experience in the property sector, which Zara has found to be a deciding factor for the roll-out of its own network in Italy.

Its entry into the Italian market strengthens the Inditex group’s growth potential in Europe, the area in which it mainly operates and in which it is chiefly concentrating its international expansion plans for the next few years. Inditex considers that Italy is an attractive market for its commercial offer, due both to its size and to its special sensitivity towards fashion.
www.inditex.com

Inditex opens its first store in Iceland and begins preparations for its entry into Switzerland
15-10-2001

The Inditex group is already present in 35 countries The first store of the Inditex group in Iceland, a store of the Zara chain, has opened in Reykjavik. The new store, measuring approximately 1,500 m2, is located in Smaralind commercial area, in the Icelandic capital.

In addition, Inditex has begun preparations for its first openings in Switzerland, where it expects to have two stores of the Zara chain and another two of the Oysho chain during the next year. Two establishments – one from each chain – shall be located in the main shopping area in Geneva, namely in the building known as the Clock Tower, in the Place du Mollard.

The Zara store’s retail area will measure 1,700 square metres and that of Oysho will be around 250 square metres. The other two stores will be located in La Praille. In this case, the new Zara store will come to 1,500 square metres and the Oysho store will have a similar retail area to the other one, around 250 square metres.
www.inditex.com

Inditex gives its employees 3.5 million shares with a market value of Ptas 10,000 million

25-11-2001
Inditex has set in motion the execution of the Employee Stock Participation Plan for the employees of the Group, by virtue of the resolutions passed by the Shareholders’ Meeting in January 2001. Almost 18,000 employees are going to benefit from the plan, of which more than 15,000 shall receive shares in the company and the remainder shall receive the equivalent in money. The amount of shares involved comes to 3,449,606, which equals more than 10,000 million pesetas at yesterday’s market price. In accordance with the decision of the Inditex Shareholders’ Meeting, the beneficiaries of this Plan are the employees of any of the companies of the Group already working in the company on 31 December 2000 and who remain employed four months after the company’s IPO – which took place on 23 May of this year. Each of them will receive 50 shares for each year or partial year worked in the group. In those countries where shares cannot be given, the employees will receive the equivalent sum of money. The criterion of length of service is the only one determining the number of shares to be received. It has been wished to reward in this way the collective effort of the employees who have collaborated with their dedication, regardless of their position or professional duties within the Group. The employees benefiting from the Plan number some 17,812 (pending the final adjustments in the execution of the Plan) in more than twenty countries. Of these, 15,254 receive shares and the rest, amounts of money. The employees of the group in Spain will receive 86.5% of the total number of shares given.

Inditex’s net income increased by 31% in the first half of fiscal 2001

The Group forecasts ending the fiscal year with 1,270 stores of its six fashion chains * Net sales increased by 26% and like-for-like sales rose by 9% over the same period * EBITDA grew by 39% and EBIT by 42% * Improvements in management and efficiency have resulted in operating costs growing at a slower pace than that of sales The increase in consolidated net sales for Inditex during the first half of fiscal 2001 has been 26%, reaching €1,331.8 million. Inditex s net income has increased to €91.7 million, 31% more than in the same period for the previous year. For its part, operating income (EBIT) has increased to €137.6 million – 42% higher- and cash flow to €225.7 million, 39% up on the first half of fiscal 2000. The increase in margins is a consequence of efficient cost management and of continuous improvement overall, which have allowed operating costs to grow at a slower pace than that of sales.

The increase in net sales is due both to the opening of new stores and to the growth in like-for-like sales (stores open in both periods of comparison and with a fixed exchange rate), which stands at 9%. Moreover, all the chains of the Group have achieved growth in sales exceeding 20%. Inditex opened 68 new stores during the half year and forecasts opening another 122 in the second half, ending the fiscal year with a total of 1,270 stores around the world. Included in this forecast are 25 Oysho stores, the first 10 of which were opened to the public on 7 September. Investments made during the first half came to €215 million, from an expected CAPEX for the whole fiscal year of €400 million.

Evolution after the closure of the first half During the eight weeks that have passed since the closure of the first half, the evolution of net sales of the Inditex Group has remained in line with the figures for the first half of the year. Nor have there been changes with respect to previous periods since the events on 11 September in the United States. As regards the first two weeks of activity of Oysho, sales have met Inditex’s expectations. Employee Stock Participation Plan Today marks the beginning of the execution of the Employee Stock Participation Plan for the free distribution of shares to the employees of the Group, by virtue of the resolutions passed by the Shareholders Meeting in January 2001. Around 17,000 employees are going to benefit from the plan, of which some 15,000 will receive shares and the remainder will receive the equivalent amount in money, as it was not possible to carry out the giving of shares in their countries. The amount of shares to be given comes to approximately 3.5 million.

Inditex increased its net sales by 32% and its net income by 30% in the first quarter of 2001

The five chains of the group opened 35 new stores over this period, reaching a total of 1,115 The consolidated results for Inditex in the first quarter of 2001 - from 1 February to 30 April 2001- reflect an increase of 32 percent in net sales, which reached €664.3 million, as well as an increase of 30 percent in net income, which came to €50.5 million.

These figures exceed the forecasts of the company, but do not alter its expectations for the whole of the fiscal year. The positive sales performance has lead to an increase in operating cash flow (EBITDA) of 37 percent and an increase in operating income (EBIT) of 38 percent. Sales have grown both like-for-like compared to the previous fiscal year and due to new store openings, 35 at the end of the quarter.

The global figure of group stores stood at 1,115 on 30 April, and it is forecast that the fiscal year will close with 1,255 stores open, 175 more than the previous year, 17 among them from the new chain, Oysho. The volume of investments of the group in the first quarter of 2001 has been €105 million, out of an estimated total of €400 million for the whole of the fiscal year 2001.

Zara Owner Inditex Files For Stock Debut
Spanish retailing giant Inditex, possessor of over 1,000 global outlets, on Monday filed to float about a quarter of its shares in what is likely to be Spain's biggest flotation this year. Analysts' valuations on the company range as high as 10bn euros ($9.34bn), putting it in a league with Britain's Marks and Spencer which has a market capitalisation of around 12bn euros.

Inditex is one of Spain's most successful retail clothing groups and owns clothing chains Zara, Pull & Bear and Massimo Dutti. "This morning we filed the registration of the offering for 26.09 per cent of our shares," chief executive Jose Maria Castellano told a news conference, after reporting a 27 per cent jump in net profit year-on-year to 43.13bn pesetas ($240.6m).

Castellano said the stock market debut was likely in the first half. The sale is set to be Spain's biggest flotation this year even after the sale of state airline Iberia, which should net roughly 1bn euros. Inditex will sell up to 162.65 million shares, including a greenshoe or oversubscription tranche. Last year turnover stood at 435.05bn pesetas ($2.43bn), up 28 per cent year-on-year. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 27 per cent to 86.77bn pesetas ($484m).

With more than 1,000 outlets in Europe, Asia and Latin America, the fashion house opened a new shop every three days over the past three years on average, general director Juan Carlos Rodriguez said. Spain is the focus of almost half of Inditex's business, with other European countries accounting for 30 per cent and the Americas 15 per cent.

At present Amancio Ortega, chief executive and founder, holds an 80 per cent stake. His family controls the remaining shares, a company spokesman said. In 2000, Inditex invested more than 200bn pesetas, mainly chanelled into 150 new shops, distribution centres and hi-tech production plants, it said in a statement. Control of every stage of production, from drawing board to shop floor, would continue to be the group's retail recipe, it said. "We've never looked to acquisitions but we will keep to our path of organic growth," Castellano told reporters, roundly ruling out speculation of a merger with smaller Spanish retailer Adolfo Dominguez.

The company's main competitors are publicly-listed Swedish retailer Hennes & Mauritz, US-based Gap Inc, and British counterpart Next. Global coordinators for the share sale are Morgan Stanley Dean Witter, Schroder Salomon Smith Barney, Banco Bilbao Vizcaya Argentaria and Banco Santander Central Hispano.

(C) Reuters Limited 2001.

www.inditex.com