El Corte Inglés grows for fourth consecutive year as profits surge 25%
today Jul 26, 2018
Spanish department store group El Corte Inglés increased its profits by 25% to 202 million euros ($236m, £179m) in the financial year ended February 2018, while revenues rose 2.8% with growth across all departments.
The results were released by the company on Wednesday after four years of unbroken growth. Revenues reached 15.9 billion euros ($18.6bn, £14bn), and EBITDA was 1.05 billion euros ($1.2bn, £0.9bn), up 7.4% on the previous year.
Additionally, the company’s EBIT increased by 29% to 412 million euros. Meanwhile, El Corte Inglés managed to narrow its debt to 3.84 billion, down 22.8% compared with 2014.
These are the first results under the leadership of co-CEOs Nuño de la Rosa and Victor del Pozo. De la Rosa, who was also appointed chairman of El Corte Inglés in June, is responsible for the company’s corporate affairs, while De Pozo oversees the distribution and department stores divisions.
SFERA REPORTS GROWTH
Within the group’s divisions, the group’s own clothing brand Sfera also ended 2017 on a high. The fashion and accessories chain made revenues of 217 million euros during the period, up 9.4%, while EBITDA reached 40.8 million, up 27.2%.
Moving forward, a combination of omnichannel capabilities and digital transformation will serve as growth pillars for group with the aim of securing its growth in the future.
Additionally, the company will continue to expand internationally, but not through its department store brand. Rather, it plans to build on the recent agreement with Germany’s Karstadt to sell its own clothing brands Boomerang and Mountain Pro in Karstadt stores across Germany.
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