Inditex, the parent company of fashion retailers Zara and Massimo Dutti, has revealed a fall in profits to €1.1bn (£940m) for the financial year ending 31 January 2021 – as Covid-19 forced many of its stores to close.
The retail group revealed that its sales fell 28% to €20.4bn (£17.4bn), down from €28.3bn (£24.2bn) the previous year, as worldwide lockdowns took effect.
However, it added that its second half of the year showed improvement with its online operations delivering €1.3bn (£1.1bn) of net profits during the final six months of the year alone.
It added that in total online sales came to €6.6bn (£5.6bn) and grew 77% in constant currencies.
Inditex’s executive chairman, Pablo Isla, said: “Inditex has emerged stronger after such a challenging year thanks to the amazing commitment displayed by everyone here at the company.
“Inditex as a company is stronger today than it was two years ago, with a unique business model and a global, flexible, digitally integrated and sustainable sales platform, which places us in an excellent position for the future.”
The group added that thanks to the “robust net financial position”, its board will submit a motion for the payment of a €0.70 (£0.60) per share dividend at its next AGM.