Qualitative and quantitative financial analysis of INDITEX

Abstract

Inditex group (Industria de Diseño Textil, SA) is made up of more than 100 companies operating in textile design, manufacturing and distribution. Its business is one of the world’s largest fashion retailers, having eight store formats: Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe. The roots of Inditex go back to 1963, when Amancio Ortega Gaona, started a business making housecoats and robes in A Coruña called GOA. The business grew steadily over 10 years until Ortega owned several factories, which distributed their merchandise to other European countries. In 1975, Amancio Ortega opened the first Zara store on a street in downtown A Coruña, Spain. The first shop was a success, fact that encouraged Ortega to open more Zara stores in the main Spanish cities. The chain of stores grew rapidly, and in 1985, it was created Inditex as the head of the group of companies. Along 1986 and 1987, the group installed a new and modern distribution system that could meet the needs of its expected rapid pace of growth...