Stores that opened in place of Zara suffered a loss of 5.4 billion rubles – Kommersant
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In 2023, New Fashion JSC (a former structure of the Spanish Inditex, Zara brand), which develops the Maag, Dub, Ecru, Vilet stores, began to restore sales, but at the same time recorded billions in losses, reports RBC with reference to the company’s financial statements. At the end of the year, its revenue more than doubled, to 21 billion rubles. However, the company received a net loss of 5.4 billion rubles. against net profit of 3.9 billion rubles. a year earlier.
According to the reporting of New Fashion JSC, its revenue from the sale of clothing increased from 5.4 billion rubles. in 2022 to 19.8 billion rubles, footwear – from 585.2 million to 1 billion rubles. The company also increased expenses – from 13.8 billion rubles. a year earlier to 25.6 billion rubles. In particular, material costs increased from 6.9 billion to 12.1 billion rubles, commercial expenses – from 6.9 billion to 11.2 billion rubles. The average number of employees reached 3.9 thousand people versus 3.7 thousand.
At the end of last year, New Fashion had 243 stores in Russia. It follows from the statements that the company expects to receive in 2024–2025 a profit from the sale of goods sufficient to cover the lack of working capital. It is planned to achieve this, among other things, by entering new marketplaces.
Spanish Inditex owns the brands Zara, Bershka, Pull & Bear, Oysho, Stradivarius. It suspended operations in Russia in March 2022. A year later, New Fashion JSC bought Fashion And More Management DMCC, registered in the UAE. According to consultants, foreign retail consumer brands that have curtailed or temporarily suspended business in Russia could have lost up to $2 billion
About the situation in the fashion industry – in the material “Kommersant” “This is fancy money”.
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