INDITEX Group

Inditex achieves net sales of 9,709 million euros, an increase of 10%

*At the end of the third quarter, the Inditex workforce totalled 106,251 employees, as the company created 9,678 jobs in the past 12 months

*Net openings in the first nine months totalled 358 stores,
for a total of 5,402 stores in 78 markets

*Store sales in local currencies climbed by 11% between
1 November and 11 December

Inditex’s net sales totalled 9,709 million euros in the first nine months of fiscal 2011 – from 1 February to 31 October --, an increase of 10% from the same period a year earlier. Net income stood at 1,302 million euros, an increase of 10%. Gross profit rose by 9% to 5,784 million euros, leaving the gross margin at 59.6%. Inditex created 9,678 new jobs in the past 12 months. The Group’s workforce totalled 106,251 people at 31 October 2011.

Key figures (first nine months of 2011)
(millions of euros)	3rd Quarter 2011	3rd Quarter 2010	Change 11/10
Net sales	9,709	8,866	10%
Gross profit Gross margin	5,784 59.6%	5,307 59.9%	9%
EBITDA	2,217	2,061	8%
EBIT	1,679	1,565	7%
Net income	1,302	1,179	10%

Inditex continued the pace of its openings in the first nine months, unveiling 358 new stores in 45 markets. Consequently, as of 31 October 2011, the Group had 5,402 stores and a retail footprint spanning 78 markets, after inaugurating its first stores in Australia earlier in the year. The company’s global multi-brand strategy paid off by delivering significant penetration of recently-opened markets by Inditex’s younger formats. Bershka launched in six new countries and Oysho in four, while Pull&Bear, Stradivarius and Zara Home each entered in three new markets.

Following the end of the third quarter, Inditex introduced the Group's first stores in Taiwan, South Africa and Azerbaijan, building on its global presence and extending its reach across five continents. Georgia and Peru are among markets set to welcome their first Inditex stores in coming months.

The pace of store launches was particularly intense in China, with 79 openings in the first nine months. The Group now has 250 stores in China, in 42 cities. All Inditex concepts present in the Chinese fashion market opened stores during the period, with two new formats commencing operations: Oysho (nine stores) and Zara Home (four stores).

Other noteworthy growth markets, in addition to China, included Japan, where, in addition to eight new Zara locations, Bershka debuted its first four Japanese stores. These included a flagship store in the heart of Tokyo's bustling Shibuya district.  Similarly, Inditex enjoyed a remarkable expansion in South Korea in the first nine months, with eight new locations, including the country's first Pull&Bear, Bershka and Stradivarius stores.

Store openings among Inditex concepts.  Other regions of the world also saw noteworthy openings. Highlights included Germany's first Bershka, located at a coveted spot on Tauentzienstraße, one of Berlin’s busiest shopping areas. German shoppers also flocked to new Zara Home shops in Frankfurt, Düsseldorf and Hamburg and a new Massimo Dutti in Münster.

As for Pull&Bear, highlights included its first stores in the Netherlands, in The Hague and Tilburg, followed by a third Rotterdam store. The latter is the chain's largest store in the world and is a benchmark for environmental sustainability, inspired by the Group's commitment to opening eco-efficient stores.

Meanwhile, Uterqüe chose its first outlet in Palma de Mallorca, at the heart of Paseo de Born, as the venue for revealing its revamped store image, while Stradivarius embarked upon a remarkable expansion in Poland, inaugurating 15 stores in the first nine months. In the same period, Oysho began expanding in Ukraine with its first locations in Kiev, Odessa and Donetsk.

Online launches. By the end of the third quarter of 2011, all Inditex retailers had arrived on the e-commerce scene, thanks to the launch on 6 September of online stores for Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Uterqüe (Zara and Zara Home have had online shops since 2010 and 2007, respectively). Online operations commenced in a total of 15 European markets. As of the aforementioned date, countries with access to at least some of the retailers' online stores included: Germany, Austria, Denmark, Spain, France, the Netherlands, Ireland, Italy, Monaco, Norway, Poland, Portugal, the United Kingdom, Sweden and Switzerland. In addition, Zara’s online store premiered in two new markets, the United States (7 September) and Japan (20 October).

Beginning of the fourth quarter of 2011. Store sales in local currencies between 1 November and 11 December rose by 11%.

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