Zara UK reports strong sales amid difficult market conditions

By

Barbara Santamaria

Published
Jun 21, 2016

Sales at Zara’s UK subsidiary increased by 8.2% to £535.2 million in the year to 31 January 2016 helped by the opening of two new stores on London's Oxford Street and in Guilford.

The UK subsidiary operates 68 directly-operated stores across Britain, and employs over 3,000 people. The company’s focus for the 12 month period was to strengthen profitability by focusing on sales growth, while keeping operating expenses under tight control to increase operating margins.

Profit before taxes was £58.3 million, up 18% from £49.2 in the previous year.
Zara UK paid its Spanish parent company Inditex dividends of £47 million, up from £43 million in 2015.

Meanwhile, sales at Stradivarius’ British arm surged by 92.2% to £3.1 million, following the launch of the brand in 2015. The young fashion label opened a new store on London’s Oxford Street in June, while two additional stores are due to open at Trafford Centre and Belfast.

Massimo Dutti decreased sales across UK stores slightly by 0.4% to £33 million, compared to £33.1 million in the previous year. The portfolio includes a total of 12 stores in the UK.

Bershka also presented a decline in sales. UK sales for the period amounted to £16.4 million, down 1.2% from £16.6 million in 2015.

Lastly, Pull & Bear’s British subsidiary reported sales growth of 1.1% totalling £18.7 million. The company operates 7 stores across the UK.