Performance in FY2012
In FY2012 INDITEX continued its global, multi-concept, multi-channel growth.
Net sales reached €15.9 billion in FY2012, with sales growth of 16% (14% in local currencies).
Like-for-like sales increased 6% in FY2012 (7% first half and 6% second half). The like-for-like calculation includes 77% of FY2012 store sales (i.e. sales in stores opened for the whole of fiscal years 2012 and 2011).
In FY2012 INDITEX retail space increased 11.4%. Time weighted space growth was 10.6%. Total selling area at FYE reached 3,161,448 square metres:
| Square metres | 31 January 2013 | 31 January 2012 | Chg % 12/11 |
|---|---|---|---|
| Zara | 2,009,717 | 1,824,753 | 10% |
| Pull & Bear | 254,413 | 223,687 | 14% |
| Massimo Dutti | 172,095 | 152,614 | 13% |
| Bershka | 338,450 | 300,351 | 13% |
| Stradivarius | 206,584 | 178,231 | 16% |
| Oysho | 74,669 | 68,261 | 9% |
| Zara Home | 93,166 | 79,001 | 18% |
| Uterqüe | 12,354 | 12,082 | 2% |
| Total | 3,161,448 | 2,838,980 | 11% |
Net store openings in FY2012 amounted to 482 reaching a total of 6,009 stores in 86 markets. In FY2012 INDITEX has opened stores in 64 markets:
|
|
Net openings | Total stores | |
|---|---|---|---|
| Concept | 2012 | 31 Jan 2013 | 31 Jan 2012 |
| Zara | 120 | 1,751 | 1,631 |
| Zara Kids | (25) | 174 | 199 |
| Pull & Bear | 69 | 816 | 747 |
| Massimo Dutti | 57 | 630 | 573 |
| Bershka | 74 | 885 | 811 |
| Stradivarius | 96 | 780 | 684 |
| Oysho | 41 | 524 | 483 |
| Zara Home | 47 | 357 | 310 |
| Uterqüe | 3 | 92 | 89 |
| Total | 482 | 6,009 | 5,527 |
A list of quarterly openings and stores opened as at FYE by concept and by market is included in Annexes IV and V.
All the concepts have increased their sales demonstrating their global reach. Net sales by concept are shown in the table below:
| Concept | 2012 | 2011 | Chg % 12/11 |
|---|---|---|---|
| Zara | 10,541 | 8,938 | 18% |
| Pull&Bear | 1,086 | 957 | 13% |
| Massimo Dutti | 1,134 | 1,013 | 12% |
| Bershka | 1,485 | 1,316 | 13% |
| Stradivarius | 961 | 871 | 10% |
| Oysho | 314 | 313 | 1% |
| Zara Home | 350 | 317 | 10% |
| Uterqüe | 74 | 68 | 9% |
| Total | 15,946 | 13,793 | 16% |
The Group operates a global sales platform. Store sales by geographical area are shown in the table below:
| Area | 2012 | 2011 |
|---|---|---|
| Europe (ex-Spain) | 45% | 45% |
| Spain | 21% | 25% |
| Asia and ROW | 20% | 18% |
| America | 14% | 12% |
| Total | 100% | 100% |
Online sales for Zara were launched in Poland and China in 2012.
Gross profit rose to €9.5 billion, 16% higher than the previous year. The Gross margin has reached 59.8% of sales (59.3% in FY2011).
Operating expenses have been tightly managed over the year and have grown by 14%, mainly as a result of the strong growth in sales and the new retail space added. They include all the start-up costs for new space addition.
| Million euros | 2012 | 2011 |
|---|---|---|
| Personal expenses | 2,548 | 2,234 |
| Rental expenses | 1,530 | 1,399 |
| Other operating expenses | 1,527 | 1,286 |
| Total | 5,605 | 4,919 |
At FYE 2012 the number of employees was 120,314 (109,512 at FYE 2011).
FY2012 EBITDA came to €3.9 billion, 20% higher than the previous year, and EBIT to €3.1 billion, 24% higher.
The breakdown of EBIT by concept is shown below:
| EBIT by concept (Million euros) | % sales | % total | |||
|---|---|---|---|---|---|
| Concept | 2012 | 2011 | Chg% 12/11 | 2012 | 2012 |
| Zara | 2,233 | 1,725 | 29% | 21.2% | 72% |
| Pull&Bear | 182 | 140 | 30% | 16.7% | 6% |
| Massimo Dutti | 197 | 238 | -18% | 17.3% | 6% |
| Bershka | 239 | 159 | 51% | 16.1% | 8% |
| Stradivarius | 208 | 192 | 9% | 21.7% | 7% |
| Oysho | 26 | 36 | -29% | 8.2% | 1% |
| Zara Home | 41 | 39 | 5% | 11.7% | 1% |
| Uterqüe | -9 | -8 | - | - | - |
| Total EBIT | 3,117 | 2,522 | 24% | 19.5% | 100% |
The following chart shows the breakdown of Financial results.
| Million euros | 2012 | 2011 |
|---|---|---|
| Net financial income (losses) | 13 | 16 |
| Foreign exchange gains (losses) | 1 | 20 |
| Total | 14 | 37 |
Net income came to €2.4 billion, 22% higher than the previous year.
INDITEX’s Board of Directors will propose at the General Shareholders Meeting a dividend increase of 22%, composed of an ordinary dividend of €1.90 per share and a bonus dividend of €0.30 per share, equating to a total dividend of €2.20 per share. €1.10 will be payable on 2 May 2013 as an interim ordinary dividend and €1.10 would be payable on 4 November 2013 as the final ordinary and bonus dividend.
INDITEX continued to show a strong financial position in FY2012.
| Million euros | 31 Jan 2013 | 31 Jan 2012 |
|---|---|---|
| Cash & cash equivalents | 3,843 | 3,467 |
| Short term investiments | 261 | 0 |
| Current financial debt | (2) | (1) |
| Non current financial debt | (4) | (2) |
| Net financial cash (debt) | 4,097 | 3,465 |
The operating working capital position remains negative, as a consequence of the business model.
| Million euros | 31 Jan 2013 | 31 Jan 2012 |
|---|---|---|
| Inventories | 1,581 | 1,277 |
| Receivables | 848 | 531 |
| Payables | (3,409) | (2,679) |
| Operating working capital | (980) | (871) |
Funds from Operations reached €3.3 billion in FY2012, 25% higher.
Ordinary Capital Expenditure for FY2012 amounted to €1.1 billion driven by retail space growth in the year. Extraordinary capital expenditure amounted to €245 million mainly as a result of the acquisition of unique retail premises for Zara at 333 Oxford Street/ 89 New Bond Street in London.
Dividends paid to shareholders in 2012 reached €1.1 billion.
