HandM Fast Retailing Inditex giants discreet sector recovery - The giants Inditex, H & M or Fast Retailing embody the discreet recovery of a sector that seeks to leave behind the 'catastrophic' 2020.

The textile sector in Spain closed 2020 with an unprecedented debacle: it billed a total of 10,619 million euros, which represents a fall of 41.26% compared to the previous period. This reality was followed by another: the sector had lost 26,700 jobs and has led to the closure of 14,800 stores, according to data sent by the employers ' association Acotex.

"The data are catastrophic, we are in survival mode," confessed the president of Acotex, Eduardo Zamácola. However, during the round of questions, a journalist brought up the recent results of Inditex and asked him if the Galician group was an oasis in the desert. He was, though not the only one.

HandM Fast Retailing Inditex giants discreet sector recovery

Pablo Isla, executive president of Inditex said that these results were the most evident proof of the "progressive and strong recovery" of the group. The group had a net profit of EUR 421 million in the first quarter of its fiscal year 2021. This meant leaving behind the historical losses of 409 million euros recorded a year earlier by the impact of the pandemic.

As for the group's sales, these rebounded by 49.6%, to 4,942 million euros. The manager did not overlook that the sale between May and the first week of June had been 5% higher than the same period of 2019. A starting point that invited hope.

This still discreet recovery has not been exclusive to the Galician giant. H & M was up 75% in its second fiscal quarter (March to May). The Swedish group stressed that if the transactions from 1 to 13 June were attended, these rebounded by 35%, compared to the same period of 2020, and up to 2% if compared to the same period of 2019.

HandM Fast Retailing Inditex giants discreet sector recovery: Fast Retailing, the Japanese group that owns the clothing chain Uniqlo, improved its operating income by 23% in the first quarter of its fiscal year 2021. All this allowed it to reach 113,100 million yen, about 900 million euros, thus exceeding the levels prior to the pandemic in this variable.

However, sales reached 620,000 million yen, about 4,900 million euros at the current exchange rate, a decline of 0.6%, while the attributable net profit for the period was about 560 million euros, 0.7% less.

For its part, Abercrombie & Fitch earned revenues of $ 781 million during its first quarter ( from February to April), which means an increase of 61% compared to what was recorded a year earlier. In addition, this figure is 47 million more than those billed in 2019, while achieving its highest operating profit since 2008.

HandM Fast Retailing Inditex giants discreet sector recovery

PVH the owner of Calvin Klein, who has not yet managed to recover his pre-pandemic level, saw his income increase by 55%, to 2,079 million dollars (about 1,743 million euros). "We are very satisfied with our results for the first quarter of 2021, which significantly exceeded our expectations," explained Stefan Larsson, CEO of the company, who raised his forecasts for the year.

According to Expansión, Mango and Tendam, the owner of Cortefiel or Springfield, would also be already above their 2019 figures. In fact, Mango surpassed its pre-pandemic sales for the first time in May, according to company sources.

El Corte Inglés has not yet reached these figures due to its dependence on tourism. However, from the department store group point out that their sales are already higher than those of 2019 if this effect is excluded, that is, if only the purchases of Spanish consumers are counted.

HandM Fast Retailing Inditex giants discreet sector recovery: If there is something undoubted is the oxygen balloon that has been the online channel for large fashion groups. Such is the case, that in 2020 e-commerce in the textile trade represented 18% of total turnover compared to 8 and 10% in previous years, according to Acotex.

The good performance of the digital channel is present in the heart of the Galician giant, where it grew 67% at a constant exchange rate, in line with the growth of 77% recorded during the year of the pandemic, when it contributed 6,612 million euros. The group's goal was to have internet sales represent 25% of turnover by 2025, but the forecast failed: the last year revealed that e-commerce already accounted for 32%.

Behavior similar to the one that happened in Mango. While the company closed 2020 with a reduction in sales of 22%, to 1,842 million euros due to the impact of COVID-19, online sales rebounded by 36%, to assume 766 million euros in turnover. Now a justified ambition leads the company to expect the figure to climb to 1,000 million by 2021.

HandM Fast Retailing Inditex giants discreet sector recovery

More news:

The government approves an investment of almost 100 million euros to finance more than 600 projects of SMEs and entrepreneurs

The Government has approved on Tuesday in the Council of Ministers an investment of 98.5 million euros to support SMEs and innovative entrepreneurship through the public body ENISA, under the Ministry of Industry, Trade and Tourism.

The three funding lines (Enisa Young Entrepreneurs Line, Enisa Entrepreneurs Line and Enisa Growth Line) will provide financial support to more than 600 business projects. Induced investment (public investment that stimulates demand) is estimated to be 218 million euros, attracting other investors.

As has been pointed out to the minister of Industry, Trade and Tourism, Reyes Maroto, in a statement, "to provide the necessary support to smes and those undertaking in our country remains a high priority for the Government, carrying out policies of lever in which ENISA, through its financing lines, it is a fundamental agent for the recovery and transformation of our economic model in the era postcovid".

For his part, the CEO of the National Innovation Company (ENISA), José Bayón, interviewed a few months ago, said that ENISA will once again be at the height of innovative entrepreneurship, betting on reaching the maximum possible number of projects with lines that, without a doubt, are a guarantee of success and also of the future".

Last year, the executive led by Pedro Sánchez allocated 83 million euros for 506 projects. By this year, 11 per cent more applications had been received. In total, ENISA has financed more than 7,000 loans, with more than 1,100 million euros invested and with some 6,300 companies financed. The loans, which are participative, have amounts between 25,000 euros and 1.5 million euros.