Zara’s profits dropped 13.4 percent in India in the 2019 financial year
today Jul 1, 2019
Spanish fast fashion retailer Zara saw its net profits in India drop by 13.4 percent during the 2019 financial year to Rs 71.49 crore ($10.75 million) although revenue had increased by 17.7 percent to Rs 1,438 crore.
Zara’s profits has been at Rs 82.59 crore during the 2018 financial year but were down to Rs 71.49 crore during the 2019 financial year. Revenue had increased in the 2019 financial year, however, to reach Rs 1,438 crore compared to revenue of Rs 1,221.67 in the 2018 financial year. Zara’s Indian retail partner Trent Limited, part of the Tata Group, reported the brand’s results in its annual report released on June 28.
The brand has recently experienced increased competition in the Indian market coupled with a general slowdown in demand. Another reason for decreased profit was costs incurred as the brand opened two India stores during the 2019 financial year, giving it a current presence in 10 cities across the country.
Zara is owned by Inditex SA and retails in India through a joint venture with Trent Limited. The 51:49 joint venture, Inditex Trent Retail India, runs Zara’s business in the country. Zara’s main competitors in India are other international fashion fashion brands such as H&M, Gap, and Forever 21.
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