Zara owner Inditex forecast healthy sales as soon as lockdowns are lifted, after the coronavirus crisis knocked its net profit to 1.1 billion euros 1.31 billion in 2020, a drop of 70 on the previous year.
Inditex said on Wednesday that it hoped that nearly all of its 6,829 shops worldwide would reopen by midApril, with around 15 still closed due to COVID19 restrictions as of March 8.
As soon as the stores reopen, the level of sales becomes very healthy, Chairman Pablo Isla said on a conference call.
Zaras website shows a new collection rife with knitwear, bodysuits and baggy shirts for women and casual vests and jeans for men, suited to the continued workingfromhome lifestyle.
The spring collection was strong and bright, Isla said, adding Its full of bright colours, very optimistic.
Excluding its five significant markets with stores still closed, Germany, Brazil, Greece, Portugal and Britain, Inditex said likeforlike sales in the first week of March grew 2.
The impact of lockdowns was clear in the fourth quarter when net profit fell 53 to 435 million euros on sales of 6.3 billion euros, a steeper drop than the 26 in the third quarter, as restrictions came back into force across much of Europe.
Strong online sales, up 77 from the previous year, partly cushioned the companys performance, coupled with tight inventory management which Inditex said had enabled it serve customers from instore stock.
Nevertheless, total sales for the year were down 28 to 20.4 billion…