Zara UK profits slide despite strong sales increase

By

Barbara Santamaria

Published
Oct 17, 2017

The main objective of Zara UK for the year ended 31 January 2017 was to strengthen the company’s profitability, however fresh accounts revealed a 32.8% drop in profit for the period as the brand continued to invest in its refurbishment programme.

Zara UK reported pre-tax profits of £39.2m in its latest accounts submitted to Companies House, compared to profits of £58.3m in the previous year.

During the period, the company carried out large scale works in its stores in Bristol and Manchester Trafford Centre, and smaller scale works in some of its London branches, resulting in selling and distribution costs increasing by 11%.

It also moved its UK head office from Regent Street to Lumina House on New Bond Street.

The company, however, continues to be popular with sales increasing 13% from £535.1m to £602.7m during the 12 month period to end of January.

At 31 January 2017, Zara had 66 stores across the UK.