Spanish fashion chain Zara's parent company Inditex Group has reported that net sales increased by 22 percent during the first quarter of FY2006 (from 1 February to 30 April) compared with Q1 05, reaching €1,715 million.
Growth in sales is a result of the increase of the selling area and comparable store sales.
Inditex net income in Q1 '06 reached €150 million, 20 percent higher than Q1 '05. EBIT and EBITDA increased by 19 percent and 20 percent respectively, and gross margin on sales increased by 22 percent, reaching 55.7 percent.
During the first quarter of FY2006 the eight commercial formats of the Inditex Group have totaled 114 new stores. Net openings forecasted throughout FY2006 are between 410 and 490, with an expected CAPEX of between €850 and €950 million.
Inditex Group is one of the worlds largest fashion distributors, with eight sales formats - Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home y Kiddy's Class - boasting 2,696 stores in 62 countries.
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