Inditex, the Spanish owner of fashion brand Zara posted its first-ever loss in India as sales dipped by 28% due to Covid lockdowns and related staggered reopening during the financial year 2021 (FY21). The fashion house consistently posted profits in India since entering the country in 2010.
Zara’s joint venture partner with Tata, Inditex Trent, which runs 21 stores in India saw its revenue decline to Rs 1,126 crore in FY21. The company posted a net loss of Rs 41 crore as per Trent’s annual report released Thursday. It posted a profit of Rs 104 crore in the previous year. It is one of the most profitable apparel retailers in the country.
Trent’s annual report said FY21 started with significant uncertainty due to the pandemic. It added that operating profit was hit by a drop in sales and restaurants profits due to Covid-related lockdowns and trade restrictions.
According to an Economic Times report, Trent has yet another association with Inditex group to operate Massimo Dutti stores in India. It saw revenues drop by 50% to Rs 34 crore in FY21 with a net loss of Rs 8 crore.