The Inditex share recently experienced a significant correction.

You don't know the share?

Inditex stands for Industria de Diseño Textil SA and is one of the largest textile companies in the world, based in Arteixo, a suburb of A Coruña in Galicia.

Company boss Amancio Ortega founded a textile company in 1975 and opened its first branch.

The name of the company: Zara - today one of the most famous fashion chains that is actually present in every major city in Germany.

In 1985, Amancio Ortega combined all of its textile activities under Inditex.

Today the group includes the brands Pull & Bear, Massimo Dutti and Oysho.

The Spaniard himself is one of the richest people in the world; the share of the consumer group has been an integral part of the portfolio for many conservative investors in recent years.

Change of personnel at the top

The Spaniards are currently unrest.

One reason is likely to be the fact that the fourth corona wave is currently raging and renewed restrictions on fashion retail are feared.

However, the latest price movements were also triggered by a change in personnel at the top of the textile giant.

Because Marta Ortega Pérez, daughter of company founder Amancio Ortega, will head the board of directors from April 1, 2022. This was not the only change in personnel announced. Óscar García Maceiras takes over the post of CEO, replacing Carlos Crespo. He becomes COO again. So far, that just sounds like an ordinary persona. But the focus is on a generation change, which also changes the organization of corporate management. So far, Pablo Isla has been the strong man of the company and has led Inditex initially as Deputy Chairman and CEO since 2005 and as Chairman of the Board of Directors from 2011. Such a double function is still common in many companies in Spain. Under him, Inditex has developed into the world's leading company in its branch.The market capitalization climbed to more than 90 billion euros at times.

Now the power structure is changing and Marta Ortega Pérez will act as a kind of head of the supervisory board.

Market participants are now likely to wonder whether the change at the top had to be after two and a half years.

The question also arises as to whether the new generation of management can build on previous successes and get one of the largest fashion retailers back on track.

Balance is right again

The more than 6,600 stores can be found in 96 markets, while Inditex, including its online platforms, is active in a total of 216 markets.

In the previous year, many shops had to close due to the corona.

This resulted in a significant drop in sales.

Business has already recovered this year.

In the second quarter of the current financial year 2021/22 (end of July), sales, EBITDA and consolidated earnings even reached new highs.

Currency-adjusted sales were 7 percent higher than in the second quarter of the pre-crisis year 2019. In the first half of the year, sales climbed 53 percent year-on-year to 11.9 billion euros.

The EBITDA increased by 109 percent to 3.1 billion euros, while the net profit was 1.3 billion euros, after a loss of 195 million euros in the previous year.