Sales grow at fashion giant

Spanish fashion giant Inditex stormed ahead in the Irish market last year with a 51 per cent increase in annual sales, bringing revenues from its five clothing brands to more than €62 million.

Best known for its ownership of the Zara brand, Inditex has built up a portfolio of 25 stores since its entry into the Irish market only four years ago.

The group employs a "fast fashion" business model, which enables it to bring new lines to market within a fortnight. Its other brands, which occupy specific points on the pricing scale, are Pull & Bear; Bershka; Stradivarius; and Massimo Dutti.

While three of these units are loss-making, it is believed that the group's heavy investment in its expansion here is being financed directly through the Irish operation, with a consequent impact on the bottom line.

With four stores opening in the last financial year, Inditex says it is on the lookout for further opportunities. However, the group declined to offer any comment on its current trading here.

Za Clothing Ireland, which operates the eight mass market stores in the Zara chain, saw its sales rise to €40.36 million from €31.13 million in the previous period. Such growth means Zara doubled its revenues in less than two years - its sales two years ago stood at €17.52 million.

However, Zara's pretax profits fell to €1.65 million last year from €2.07 million in the previous period. Inditex increased the unit's share capital by €3 million to €7.5 million last year.

Bershka, the second largest chain by sales, saw its revenues increase to €10.3 million from €6.03 million. The chain, which has five Irish stores and which is geared at a younger market, trimmed its pretax loss to €69,689 from €738,571 a year earlier. Inditex increased the share capital in this unit by €2 million to €6 million.

The Pull & Bear chain, which now has nine Irish outlets, saw its sales increase to €5.23 million last year from €603,233 a year earlier. This business reported a pretax loss of €584,748, up from €183,243 in the previous period.

Massimo Dutti, which sells designer-led fashion at a higher point on the price scale, saw profits at its single store at Dundrum Town Centre in Dublin double to €1.32 million from €620,908. The store's sales rose to €4.86 million from €3.3 million.

The Stradivarius chain delivered sales of €1.3 million in the 14 months to January 2007, and reported a pretax loss of €278,315.

This chain opened a store in Newbridge, Co Kildare, in April 2006, and a store at Henry Street in Dublin in October 2006.