Inditex will relocate the bulk of its Uterqüe employees to Massimo Dutti and other group brands

Inditex will relocate the bulk of its Uterqüe employees to Massimo Dutti and other group brands

Inditex announced this Tuesday that from next 2022 the brand Uterqüe will become integrated into Massimo Dutti as part of your anticipation and digitization strategy. The company founded by Amancio Ortega will then move to relocate the bulk of Uterqüe employees within Massimo Dutti stores, and the rest of those affected within other brands of the Inditex group.

According to data from 2020, Inditex has around 82 stores of the Uterqüe brand around the world and has around 340 workers. Thus, the textile giant will relocate all employees who are affected by this integration to ensure the future of 100% of the workforce. From that moment on, the entire range of Uterqüe products will be available on the website and in selected Massimo Dutti stores and will no longer be sold in its own store.

Despite the fact that the company presented its results for the first fiscal semester, in which it closed the second best quarter in its history, Uterqüe is the brand of the group that generated the least income Inditex and also the one that presented a lower return on capital employed (ROCE). With this measure, the company seeks in this way to take full advantage of the penetration and projection that Massimo Dutti has been in international markets such as the United States, Canada, Mexico or Turkey for years.

In this way, the firm continues the strategy started with Zara Home and Zara, where, with “very good results”, the synergies between brands are maximized. All the other formats, meanwhile, will continue to develop their integrated digital transformation strategy and maintain relevant store openings.

Results and forecast

Inditex won 1,272 million euros in its first fiscal semester (which runs from February 1 to July 31, 2021) compared to the loss of 195 million that was recorded in the same period of the previous year, which was strongly impacted by the covid-19 pandemic and confinement. The company continued to consolidate its recovery and recorded a second quarter with sales, gross operating profit (ebitda) and net profit at historical highs.

In the first half of its fiscal year, sales totaled 11,936 million euros, 49% higher As of 2020, and at a constant exchange rate, growth was 53%. For this fiscal year 2021, Inditex expects the online channel to exceed 25% of total sales.

Thus, sales at constant exchange rates in the second stagnant quarter were accelerating to exceed 7% the previous historical reference for the second quarter of 2019 and reach 6,993 million euros. In the same vein, the profit for the second quarter in 2021 reaches 850 million euros and exceeds the previous level of 2019.

“Inditex is accelerating the differentiation and sustainable strategic transformation of its business model,” said Pablo Isla during the presentation of the results to the analysts, in which he also referred to the integration of Uterqüe en Massimo Dutti over the next year, within the strategy of anticipation and digital transformation of the firm of Amancio Ortega.

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