Editor’s note: This article was first published in July 2010, and its figures are from 2010: 4,700 stores in 77 countries, 2009 revenue of more than €11 billion and net profit of €1.3 billion, plus plans to enter Australia and South Africa and open in 50 Chinese cities.
Mr. Amancio Ortega‘s company is launching a new market expansion strategy. It currently has 4,700 stores spread across 77 countries. Inditex‘s new goal is to enter Australia and South Africa and open new stores in more than 50 Chinese cities within two years.
The group’s liquidity is worth highlighting: its debt level is zero, since many of its stores are leased. Inditex has funded its expansion with the money it generates itself. That sets it apart from the typical business model, and investors love that.
Inditex is Spain’s fourth-largest company by market capitalization. In 2009 its revenue topped €11 billion, of which €1.3 billion was net profit.
Clearly, for anyone thinking of investing, putting money into Inditex today will ensure their shares gain value over the next two years. But remember that you’re always at the mercy of external factors.
Further reading
- The beginnings of Steve Jobs and Apple
- Ideas for investing without risk
- The cashflow quadrant
- How to become a successful entrepreneur
Featured image: Nemigo, Public domain, via Wikimedia Commons.
