Inditex, the largest textile company in the world, recorded the first losses in its history in the first quarter of the year, due to Covid . The company lost 409 million euros, compared to the 734 million profit obtained in the same period of the previous year, due to the impact of the pandemic.
Sales in this period fell 44% to 3,303 million, as reflected by the results submitted by the company this Wednesday to the National Securities Market Commission (CNMV).
88% of the group's stores have been closed during these three months and only the online channel has remained open, which has grown, according to the results report, by 50%. In April it grew by 95%.
The company will propose to the general shareholders' meeting, to be held on July 14, the distribution of a dividend of 0.35 euros gross per share, which will be disbursed on November 2, representing a decrease of 60 % compared to the previous 0.88 euros.
Start of the year
The textile group that owns chains such as Zara or Massimo Dutti, had closed a good year in 2019, with significant growth in sales and profit. He presented his annual results just when the pandemic broke out in Spain. So, the group already said that sales between February 1 and March 16 of this year had fallen 4.9%.
In the first half of March, the drop was 24.1%. In these three months, Inditex has had all its stores closed, with the exception of most of its stores in China, and has been opening them in recent weeks, as the de-escalation process has progressed.
Given the uncertainty situation caused by the pandemic, Inditex deferred the decision on the amount of the dividend until the council prior to the July general shareholders' meeting.
During the crisis, the Galician group has made its powerful logistics network available to the Spanish Government in order to bring medical supplies. In April Inditex had brought to Spain more than 35 million protection units. In addition, in March it decided not to file a Temporary Employment Regulation File (ERTE) with its store staff and has paid the salaries of its employees during the time that the stores have been closed.
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