Zara India profit jumps 46 percent to Rs 105 crore for FY20
Spain's luxury fashion brand Zara witnessed a 46 percent growth in its profit after tax to Rs 105 crore ($14 million) for the financial year 2019-20 in the Indian market, as against Rs 71 crore in reported in the previous fiscal.
Zara’s sales in India for the fiscal grew 9 percent to Rs 1,571 crore, as against Rs 1,438 crore of the previous fiscal.
Zara entered the Indian market in 2010, and currently has 22 stores in the country. The brand operates in India through a joint venture with Trent under Inditex Trent Retail India Private Limited.
“During the year under review, the Zara entity recorded revenue of Rs 1,570.54 crore and PAT of Rs 104.05 crore. There was no increase in the number of stores in this fiscal. The incremental store openings for Zara continue to be calibrated with focus on presence only in very high-quality retail spaces,” Trent said in its annual report for 2019-20.
Despite the Covid-19 disruptions, Zara plans to continue to open brick and mortar stores in India over the coming year with at least four to five store openings planned.
Amancio Ortega founded Zara in Spain in 1975 and the fashion group owns a number of brands including Bershka, Pull & Bear, and Zara Home.
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