Economic News

Zara’s rising online sales boosted its earnings and profits in 2017

Last year profits and sales of stylish attire brand Zara surged following big rise in online sales of the company.

Zara is owner company Spanish firm Inditex, said  in a statement that last year almost 10% of its products were sold  online.

In the previous earning reports, Inditex never disclosed online sales. So the big improvement in online sales have left major impact on the last year results. Companies online sales are just under 12% for rival H&M, but is still miles apart from 40% for the UK attire giant Next.

The company said its Like-for-like sales, except new store openings, surged  5%, while net sales rose 9%. Inditex net profits jumped 7% to reach  €3.37 billion on revenues of €25.34bn.

It is reported that €562m bonus pool  will be shared by the Inditex’s 88,000 employees of the company across the globe.

Meanwhile company’s chief CEO Pablo Isla called it a year of  “solid growth”, with recent investment in technology and logistics to put the firm well placed for sustained progress.

It’s been reported that Inditex  has been investing last year . it in fact injected €1.8 billion and most of that amount was spent to integrate its stores and online businesses in each market.

On closing last year Inditex  owned 7,475 stores worldwide, that was 183 more than year before. During the last year company launched its brand stores in Belarus and  Zara online sales in India, Vietnam, Singapore, Thailand and Malaysia.

Last year 2.42 billion users visited Inditex online store and 249,000 items were sold over the internet.

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