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Tuesday, January 31, 2023
HomeLatest NewsInditex eliminates another subsidiary: Zara absorbs Kiddy's Class without changes in stores

Inditex eliminates another subsidiary: Zara absorbs Kiddy’s Class without changes in stores

Date: January 31, 2023 Time: 06:00:20

Inditex continues to make progress in its corporate simplification process. The textile giant began two years ago to eliminate needs and rationalize its commercial structures and now a new operation is known.

The Official Gazette of the Mercantile Registry (BORME) publishes that Zara Spain absorbs Kiddy’s Class Spain. Sources from the group tell La Información that it is an “operation to simplify the corporate structure of the company that does not imply any change in the operations of the stores.”

In March 2020, Inditex reported that it would concentrate its entire children’s fashion offer on Zara Kids after deciding to close the children’s line of the Massimo Dutti chain. The group’s children’s fashion chain operates with 68 own stores in Spain, Portugal and Gracia, while most of its offer is concentrated in Zara’s own stores.

The latest annual results report that the company has published shows that during 2021 it abolished 82 subsidiaries, being the year in which it has cut its corporate perimeter the most, as published by Cinco Días. As of January 31, 2022, the accounting closing date for Inditex, the group was made up of 268 companies, its lowest level in 11 years.

Inditex obtained a net profit of 3,095 million euros during the first nine months of its 2022-2023 fiscal year (between February 1 and October 31), which represents an increase of 24% compared to a year earlier.

Group sales stood at 23,055 million euros, 19% more than in the same period of 2021 (+20% at constant exchange rates) and were positive in all geographical areas.

All-time high in a quarter

In this way, Inditex reached its historical maximum of sales and profit in a third quarter, after achieving a quarterly profit of 1,305 million and sales of 8,211 million.

The company chaired by Marta Ortega and directed by Óscar García Maceiras thus met the analysts’ forecasts for sales and operating results, although it lagged behind in the net.

Despite the good performance of its figures until October, the Galician group warns that it is noticing a slowdown in its growth in the current quarter, the strongest of the year. Store and online sales at constant exchange rates between November 1 and December 8, 2022 rose 12% compared to the same period in 2021, almost seven points less than the 19% registered in the first nine months of the year.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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