Profit figures reveal highs and lows of high street
Zara profits more than double while Tommy Hilfiger’s tumble
Zara accounts recently filed show that profits increased by 146 per cent from€2.52 million to €6.2 million last year. Photograph: Getty
Pretax profits at the main Irish arm of international clothing giant Zara more than doubled last year to €6.2 million.
This followed revenue at Spanish-owned Za Clothing Ireland increasing by 14 per cent from €50 million to €57 million in the 12 months to the end of January 31st last.
The accounts recently filed with the Companies Office show that profits increased by 146 per cent from€2.52 million to €6.2 million last year.
Numbers employed by the firm last year increased from 310 to 316 with staff costs declining marginally from €9.6 million to €9.5 million.
The profit takes account of non-cash depreciation costs totalling €3.4 million with operating leases on property totalling €5.79 million.
The figures show that the firm’s shareholder funds totalled €17.8 million, which included cash increasing from €995,000 to €2.1 million. The the firm’s gross profit increased from €27.9 million to €31.8 million. Its selling and distribution costs last year totalled €24.67 million.
According to the directors’ report, they “plan to open further stores as soon as suitable opportunities arise”.
In contrast, the Irish arm of another well-known fashion brand, Tommy Hilfiger, saw its pretax profits declining by 72 per cent from €417,211 to €114,185 last year.
New figures show that Hilfiger Stores Ireland recorded the sharp drop in profits despite increasing revenue as a result of the firm’s expansion, with two new outlets opening.
The accounts show that the firm’s gross profit increased by 19.5 per cent from €5.2 million to €6.25 million in the 12 months to the end of December last year.
Numbers employed by the firm last year increased from 64 to 100 with staff costs increasing from €1.1 million to €1.58 million.
According to the directors’ report, “the retail sector has suffered significantly in the downturn, but the company has continued to be profitable in the current period. One new outlet and a concession were brought on stream during the period, which added to turnover.”
Shareholder funds stood at €899,920 last year. The firm’s cash during the year rose from €580,118 to €699,440 last year.