Fashion retailer Zara posts 13.4% drop in FY19 profit in India

Zara has reported a 13.43% drop in its profit after tax (PAT) in the Indian market to Rs 71.49 crore in FY 2018-19.

Inditex Trent Retail India Private Ltd (ITRIPL), which is engaged in the operation of Zara stores in the country, had posted a PAT of Rs 82.59 crore in FY 2017-18, however, ITRIPL had reported an increase of 17.69% in its total revenue of Rs 1,437.87 crore for the period under review.

ITRIPL is a 51:49 JV between Spain-based global fashion retailer Inditex SA and Trent, owning several brands including Zara. It is also operating another label Massimo Dutti in India.

ITRIPL said, “The entity for Massimo Dutti operates 3 stores and recorded total revenue of Rs 63.58 crore in FY19.”

Presently, the company is operating 22 stores of Zara in Delhi, Mumbai, Bangalore, Pune, Surat, Jaipur, Chandigarh, Chennai, Mohali, Hyderabad, Kolkata and Gurgaon.

Apart from Zara and Massimo Dutti, Spanish fashion firm Inditex also owns fashion brands like Bershka, Oysho, Pull and Bear, Stradivarius and Uterqüe.