By Anthony Shevlin
Spain's Inditex (ITX.MC) said Wednesday that net profit for fiscal 2017 rose due to strong performances across all of its stores.
The company, which owns the Zara chain of stores, said net profit for the year ended Jan. 31 was 3.37 billion euros ($4.16 billion) compared with EUR3.16 billion in the previous period. The company said its net profit in the fourth quarter was EUR1.03 billion, ahead of analysts' estimate of EUR1.01 billion.
Sales for the year increased 9% to EUR25.34 billion, driven by the solid performance of its Zara stores, where sales rose 7%. Earnings before interest and taxes were EUR4.31 billion, compared with EUR4.02 billion the previous year.
The company said it plans to pay a dividend of EUR0.75 a share, up from EUR0.68 a share the previous year.
In addition, Inditex said it has appointed Carlos Crespo as chief operating officer.
The company sees ordinary capital expenditure of around EUR1.50 billion for 2018, driven mainly by the addition of new space in prime locations. Inditex says it expects 4% to 6% growth in new space at prime locations in subsequent years in conjunction with its global online sales rollout.
For fiscal 2018, the company estimates space growth in prime locations of around 6% net of absorptions. The company expects 350 to 400 gross openings and the selective absorption of around 200 during the year.
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