MADRID (dpa-AFX) - Spanish fashion retailer Industria de Diseño Textil SA (IDEXF.PK) or Inditex reported Wednesday that its fiscal 2019 net profit grew 6 percent to 3.64 billion euros from last year's 3.44 billion euros.
The latest results included an inventory provision of 287 million euros due to the Covid-19 coronavirus.
Without the provision, net profit increased 12 percent from last year to 3.86 billion euros.
Inditex's net sales increased 8 percent to 28.29 billion euros from 26.15 billion euros last year. Like-for-like sales growth was 6.5 percent.
Inditex reported growth in sales from its online platform of 23 percent.
EBITDA climbed 39 percent to 7.60 billion euros.
Following the measures recommended by the health authorities, the company as of March 17 had temporarily closed 3,785 stores in 39 markets. All stores in China are open with the exception of 11 stores, following health authorities guidelines.
Regarding the current trading, the company said its store and online sales in local currencies decreased 4.9 percent between February 1 and March 16. Store and online sales in local currencies decreased 24.1 percent between March 1 and March 16.
Further, the Board of Directors of Inditex said it considers that it is not the right moment to take a decision on the dividend for fiscal 2019 due to the current uncertain situation.
Consequently, the net income generated will be allocated to reserves with a view to submitting a final proposal on dividends at a later board meeting prior to the AGM which will take place in July.
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