The Maag, Ecru and Dub stores, opened in place of Zara and Bershka, began to recover sales: revenues almost doubled in 2023. However, the New Fashion company (formerly Zara CIS JSC) ended the year with a loss of 5.4 billion rubles. The reason for this was high expenses, writes RBC.
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JSC New Fashion’s revenue in 2023 amounted to 21 billion rubles. This is double the previous year, when Zara CIS stores were closed for a significant part of the year.
At the same time, there is demand for products from stores that replaced Zara, Bershka, Pull & Bear and Stradivarius. From the company’s reports it follows that revenue from the sale of clothing over the past year increased from 5.4 billion rubles in 2022 to 19.8 billion rubles, shoes – from 585.2 million to one billion of rubles.
New Fashion significantly increased relaunch expenses: from 13.8 billion rubles the previous year to 25.6 billion rubles. The average number of employees has also increased. As a result, the company received a net loss of 5.4 billion rubles against a net profit of 3.9 billion rubles the previous year.
- In 2022, after the start of the Russian special operation in Ukraine, Inditex closed more than 500 stores in Russia and also suspended online sales. The group later sold its assets to Daher Group. The latter decided to sell items from the Spanish company’s brands under other names.
- As a result, JSC Zara CIS, which controlled stores directly under the Zara brand, was renamed New Fashion. Its parent company is Fashion And More Management from the United Arab Emirates free zone.
Author:
Karina Pardaeva
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
