Zara parent company of the third quarter decline in gross margin will be $500 million sale of 16 stores; in the nine months ended at the end of October, Inditex group’s net profit rose 6% to 2 billion 340 million euros, compared to 9% in the same period last year has slowed sharply, sales rose nearly 10% to 17 billion 960 million euros, are in line with Wall Street expectations, gross margin fell further to 57.4%. At the end of the report, the number of new Inditex stores in 52 markets around the world was 212, with a total of 7504 stores.
Zara has signed a total of 16 stores in Spain and Portugal sold the leaseback agreement with the buyer, the agreement is expected to reach US $472 million gross. It is said that the main purpose of the sale is to invest more money in expanding the online business of Zara in the Spanish region. At present, the speed of e-commerce development in Spain is lagging behind the European average, with a market share of only 3% and 8% in Europe as a whole. But analysts say it also means that the space for Spain will be bigger, which is expected to reach 18% in 2021.
Since the beginning of this year, the British luxury brand Mulberry has focused its attention on the Asian market, set up joint ventures in China and Japan, opened new stores in Shanghai and Hongkong, and further optimized the e-commerce business. In Europe and North America, the focus of Mulberry’s development is to increase the conversion rate of existing stores and expand new stores at the same time as the refurbishment.
In the six months ended September 30th, the sales of British luxury brand Mulberry was 74 million 600 thousand, compared with the same period last year, and the loss expanded to 348 million pounds from 342 million a year ago. Thierry Andretta, the chief executive, said that although the brand’s growth in the UK’s local market is weak, sales in the international market have recorded a 8% increase. At the same time, Mulberry is concentrating on promoting the sales of its positive commodity, reducing the frequency and range of sales promotion.