Martha Ortega She is only 38 years old, she is the youngest of the billionaire’s children Amancio Ortega and this friday became the heiress to one of the world’s largest fashion empires: Inditex, the Spanish group that owns Zara but also by Massimo Dutti or Stradivarius.
The day finally came and the young woman assumed as the new non-executive president of Inditex, thus initiating a new era after 17 years of leadership of Paul Islandthe number one -until 2011 as CEO and then as president- qwho achieved great results for the group and was chosen as the Best CEO of the decade.
Isla, who left all his positions and left the company to start a new professional stage that has not yet been revealed, will be replaced by the tandem Ortega and de Oscar Garcia Maceiraswho will take the place of CEO.
both must convince the markets to support the plan they have for these times of war economy.
SHORT-TERM CHALLENGES
According to the Spanish newspaper Expansionsome of the challenges that the heiress will have are immediate, while others are more strategic and long-term.
Among the first appears to convince the markets. Inditex fell 33% on the stock market since the departure of Isla was announced and new appointments.
Isla was the man who led the group to Asia and the United States. The year in which Amancio Ortega abandoned the presidency to give it to Islas in 2011 -He was previously CEO-, the company billed 13,793 million of euros and obtained a profit of 1932 million. Her daughter takes the reins of a company with some sales of 27,716 million euros and a net result of 3243 million in his last exercise, still impacted by the pandemic.
The group has doubled its size in terms of business, but also has almost 1,000 more stores (6,477 vs. 5,527), despite having closed more than 1,000 in recent years; has presence in 13 new markets with physical establishments (95 vs. 82); and added 55,000 employees to its workforce in this time (165,000 vs. 109,500).
However, at the same time that the changes were made, other events unrelated to the company occurred, and that directly affect it, such as the war in Ukraine and the acceleration of the inflationary spiral, which calls into question the evolution of consumption and economic growth in Europe.
Russia was Zara’s second marketafter Spain, where it closed 502 stores a few weeks ago and also its online sales operation.
This Thursday, Inditex lost 5% on the stock market after the poor results at the beginning of 2022 presented by H&M, which sowed concern about the evolution of the sector. This circumstance will make Marta Ortega debut her presidency with Inditex with the value relegated to second place on the Ibex by capitalization after Iberdrola.
Inflation and war are two issues that could mark the entire 2022 financial year. Inditex recognized a direct impact of 10% on its operating result due to the conflictbut the great threat is how it can affect consumption in the rest of Europe, where Inditex generates almost two thirds of its business.
LONG-TERM STRATEGY
Inditex you have done your homework well Until now. She achieved a great recovery after the pandemic and with strong investments integrated her model between online and physical stores.
According ExpansionAlthough Inditex is the leader in its sector, the continuous appearance of new rivals such as the Chinese Shein It forces you to keep your guard up. On the other hand, the fashion business is very atomized which represents great opportunities to grow.
The next investment plan, which begins in 2023, will give the first keys to the long-term vision of the new dome.
Meanwhile, this Friday, the day Marta Ortega took office, she sent a letter to the group’s workers asking them “support and patience”.
“I ask for your support and patience while I continue to learn from everyone every day and that, with the same enthusiasm and demand as always, we keep alive the values of tolerance, respect and humility that have characterized us until now”, says the new president who recalls : “I was born and raised at Inditex, and there hasn’t been a single moment in my still short career in which I haven’t felt overwhelmed by the involvement, professionalism, spirit of improvement and, above all, humanity of each one of you.”Z
(Source: The Chronicler)
