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Inditex shares fall after appointing the founder’s daughter as chair

Inditex, the world’s largest clothing retailer, has appointed its founder’s 37-year-old daughter as the company’s new chair. This was intended to resolve doubts about his successor, but prompted the sale of shares.

The shares of Zara’s owner, which has a market capitalization of € 88 billion, the largest Spanish company, fell 6% in Madrid.

Marta Ortega, the daughter of 85-year-old Amancio Ortega, who controls about 60% of Inditex’s stake and is the wealthiest man in Spain, will chair on April 1.

She has been working for the group for 15 years and says Inditex will continue to oversee the Zara brand image in particular.

“Question [about the succession] What used to exist no longer exists, “said a person near the company. “We now know what will happen after that.”

But Tuesday’s announcement surprised the market, but the group said it marked the completion of the “generational change process” that began in 2011.

“One of Amancio Ortega’s great successes was that he specialized in the company and reduced the role of his family,” said Lorenzo Bernardo de Kiros, president of the Madrid-based consultancy flea market. increase. “This is a setback.”

The company said that unlike Isla, Marta Ortega is not an executive chair and Inditex will adopt a more “Anglo-Saxon” corporate governance model.

Instead, Oscar Garcia Maceiras, General Counselor and Secretary of the Inditex Board of Directors, who will soon take over as Chief Executive Officer, will assume the lead executive role.

At a press conference, he said he was trying to “continue, deepen and develop” Inditex’s business model, which creates up to 65,000 new designs and formidable logistic organizations annually, rather than personnel changes that indicate a strategic shift. Bring the latest clothes to the store at least twice a week.

The group will also establish a new executive committee consisting of long-standing executives.

“Achieving this transition is the culmination of my commitment to Inditex and Amancio Ortega,” said Isla, who will remain in the post until March 31st.

“We’re doing this now because it’s the perfect moment,” he added at a press conference. “We have a very solid, clear strategy and a great team in every field … Obviously, we do things in Inditex in general, so in a cautious way. , I’ve been preparing for this transition for a while. “

“I’ve lived and breathed in this company since I was a kid,” said Marta Ortega. .. .. I have always said that I will devote my life to the legacy of my parents. “

With more than 6,600 stores, including the Massimo Dutti, Pull & Bear, and Stradivarius brands, Inditex has recovered from the pandemic, especially by enhancing online sales that are tightly integrated with its physical operations.

The latest quarterly revenue was around € 7 billion, surpassing the 2019 record.

According to the latest information in September, sales in local currency from August 1st to September 9th were 22% higher than the corresponding period in 2020 and 9% higher than the equivalent period in 2019.

Inditex shares fall after appointing the founder’s daughter as chair

Source link Inditex shares fall after appointing the founder’s daughter as chair

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