Reuters - Video

Edition: US | UK | IN | CN | JP

video Finance Videos

Wall Street gets Fed reality check
Wall Street gets Fed reality check - 01:51
Reuters Today: Spanish yields seen rising at auction
Reuters Today: Spanish yields seen rising at auction - 06:21
Surprise services boost points to UK recovery
Surprise services boost points to UK recovery - 02:54
Breakingviews: Do as I say, not as I do – German wages
Breakingviews: Do as I say, not as I do – German wages - 05:04
Market Pulse: Spain under fire as investors shun bond sale
Market Pulse: Spain under fire as investors shun bond sale - 03:28
Myanmar's Kyat begins managed float
Myanmar's Kyat begins managed float - 01:59
ASEAN: territorial code of conduct draft by year-end
ASEAN: territorial code of conduct draft by year-end - 01:48
U.S. Morning Call: Stock futures down, JPMorgan to be fined
U.S. Morning Call: Stock futures down, JPMorgan to be fined - 02:08
EMEA Day Ahead:: Thursday
EMEA Day Ahead:: Thursday - 03:13
3XSQ: Customer funds in question; royal return
3XSQ: Customer funds in question; royal return - 05:44
Still cashing in? Hirst retrospective
Still cashing in? Hirst retrospective - 02:32
World's biggest car delivery center
World's biggest car delivery center - 02:41
FACTBOX: Titanic the movie sails again
FACTBOX: Titanic the movie sails again - 02:20
Trading at Noon: Wall St. down on lost hope for stimulus
Trading at Noon: Wall St. down on lost hope for stimulus - 02:48
Draghi holds rates, offers caution
Draghi holds rates, offers caution - 01:50
Breakingviews: Gun bubble redux
Breakingviews: Gun bubble redux - 02:51
Yahoo cuts 2,000 jobs
Yahoo cuts 2,000 jobs - 01:15
Easter egg panic in eastern Europe
Easter egg panic in eastern Europe - 01:28
Wealth Strategies: Equity rally has 3 years left in cycle
Wealth Strategies: Equity rally has 3 years left in cycle - 06:05
Congressional insider trading ban
Congressional insider trading ban - 01:17
Gas prices no detour for car buyers
Gas prices no detour for car buyers - 02:13
Demand for fuel-efficient cars will outlast spike in gas prices
Demand for fuel-efficient cars will outlast spike in gas prices - 02:36
Most engines of growth are in emerging markets : Nissan CEO
Most engines of growth are in emerging markets : Nissan CEO - 05:39
U.S. Day Ahead: GAP set to shine with same store sales
U.S. Day Ahead: GAP set to shine with same store sales - 01:59

Zara owner continues emerging market boom

Wednesday, March 15, 2017 - 01:40

The world's biggest clothing retailer, Zara-owner Inditex, has reported a 10 percent jump in annual net profit as strong growth in emerging markets and increased online presence outweighed negative currency effects. Ciara Lee reports.

▲ Hide Transcript

▶ View Transcript

It zips the latest trends from the runway to stores in a matter of days - and sales at Inditex are showing no sign of slowing down either. The world's biggest clothing retailer and owner of Zara reported a 10 percent jump in annual profit. Strong growth in emerging markets and an increased online presence has outweighed negative currency effects with profit growing to over 3 billion euros. (SOUNDBITE) (English) WORLD FIRST, CHIEF ECONOMIST, JEREMY COOK, SAYING: "The fashion is cheap, the fashion is dependable, the quality is good. I've had this jumper for three or four years and you know, it's still hanging in there. So in the grand scheme of things, shoppers know that in a climate where prices are likely to be rising, wages are likely to be stagnant, and if they want to spend money on a little bit of quality, they are likely to get it from this company." The company opened stores in 56 countries during the year, including first openings in New Zealand, Vietnam and Paraguay. It also launched online sales in Turkey with plans for India later this year. Inditex reports in euros but makes more than half of its sales in other currencies. Falls in the value of currencies like the Mexican peso and the Russian rouble against the euro can affect earnings and profit margins. Sales at constant exchange rates rose 13 percent in the first six weeks of the new financial year. But that implies a slowdown in like-for-like sales from recent years after a period of exceptional growth. Also feeling currency pressure - rival retailer H&M. It reported a 1 percent drop in local-currency sales for February, substantially lagging analyst expectations of a 6 percent rise.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Close

Zara owner continues emerging market boom

Wednesday, March 15, 2017 - 01:40