By Joshua Kirby
Industria de Diseno Textil SA said Wednesday that sales and earnings fell in 2020, but that e-commerce grew sharply and it will pay a dividend for the year.
Sales at the Spanish retailer came to 20.40 billion euros ($24.28 billion) in 2020, down 28% from 2019. Earnings before interest, taxes, depreciation and amortization were down 40% at EUR4.55 billion, while net income fell 70% to EUR1.11 billion.
The owner of Zara and other fashion brands said performance was affected by pandemic-related store closures, but that e-commerce sales boomed by 77% to reach EUR6.6 billion in the year. Online sales are expected to continue to grow strongly in 2021 and beyond, Inditex said.
The company will propose a dividend of EUR0.70 a share at its annual general meeting. Capital expenditure is expected to stand at around EUR900 million over the next three years, and the company will invest around EUR1 billion in its digital operations over the period.
“The year has demonstrated the strength of the business model, the success of the digitalization strategy and of the fully integrated platform of stores and online, and our sustainability ambition,” Inditex Capital Markets Director Marcos Lopez said.
Write to Joshua Kirby at email@example.com; @joshualeokirby
(END) Dow Jones Newswires
March 10, 2021 02:09 ET (07:09 GMT)
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