Zara’s Australian numbers
The AFR reported that the Lew family has divested from Zara Australia. What we found even more interesting in the AFR’s article were the trading numbers released by Zara to ASIC. For the year ending in January 2018, Zara's sales went up to $282 million, i.e. about 10%, but mainly due to new store openings. Pre-tax profit fell to $12.8 million, so even if the figure represents EBIT rather than EBITDA, at 4.5% this doesn’t qualify as a great outcome. Apparently, gross profit hovers around 55%, which in our assessment is borderline for an apparel retailer. One number that must be making other retailers envious is Zara’s per store turnover – close to $15 million.