Fast fashion firms continue to be the benchmark by which other retailers are measured. Intidex and H&M’s latest results signal the health of this sector.
Intidex Sales Soar, Continues Expansion Plans
Spanish retailer Intidex posted a net income increase of 10 percent to 3.2 billion euros ($3.4 billion) for fiscal year 2016, ended January 31st.
Gross margin for the company, which operates Zara, reached 57 percent on a gross profit increase of 10 percent to 13.3 billion euros ($14.1 billion). That’s down from a gross margin of 57.8 percent during the previous year, which the company attributes to currency fluctuations.
Net sales increased by 12 percent to 23.3 billion euros ($24.8 billion). Same store sales increased 10 percent compared to an 8.5 percent increase in FY2015.
The company opened 279 stores in 56 markets in 2016, giving the retailer a total of 7,292 stores in 93 markets. And it reported that its focus will be on larger format stores going forward. Online sales for Zara were launched in Singapore and Malaysia. Thailand, Vietnam and India are next.
Net sales at Zara increased by 13 percent to 15.4 billion euros ($16.4 billion).
H&M Sales Increase
H&M today reported first quarter sales results, through February 28th. Sales including VAT totaled 54.37 billion SEK ($6.07 billion), a 7 percent increase over the same period last year. In local currency, sales including VAT rose 4 percent. Excluding VAT sales totaled 46.99 billion SEK ($5.24 billion), an 8 percent increase.
For February, sales increased 3 percent in local currencies and adjusted for calendar fluctuations over February 2016. The one day difference from 2016’s leap year amounted to 4 percentage points.
The retailer operated 4,393 stores compared to 3,970 stores in February 2016.
The company will release full first quarter sales information at the end of the month.
Price may be king but convenience governs much of the way traditional retailers are thinking about their customers today.Read more
Textile companies are delving deeper into product development to create fibers and fabrics that help regulate temperature and deal with extreme weather conditions.Read more
The Bangladesh Garment Manufacturers and Exporters Association wants to establish more reasonable wage standards for the country’s ready-made garment sector—and any potential shifts could come with a wage hike, too. The BGMEA has asked the government to form a wage board for workers in order……...Read more
Consumer prices rose by an expected rate in October compared to a year ago, the result of a retreat in energy prices that had spiked at the end of hurricane season, plus flat food prices. Apparel prices dropped slightly year-over-year.Read more
This year hasn’t been an easy one for trade, with deals becoming defunct or upended, Brexit remaining an ongoing riddle and weather-related catastrophes disrupting global supply chains. Apart from the stress these market forces may have induced, they’ve also served as a reminder that agility is in higher demand than ever before.Read more
Bangladesh has its sights set on fostering substantial growth in its leather manufacturing sector.Read more
Brandix, one of Sri Lanka’s leading exporters, has signed a joint venture agreement with global synthetic materials manufacturer Best Pacific of Hong Kong to produce synthetic fabric and webbing.Read more