Spanish retailer El Corte Inglés has posted a 0.4% increase in turnover in the first half of its financial year (March to August), of €7.59 billion.
The group said that EBITDA for the period was up 4.4% to €335 million, however the business was affected by adverse weather conditions in Spain during the summer period, which impacted its performance.
The EBITDA gain was driven by improvements in strategy as well as new management appointments. Across the group as a whole, gross margin increased by 20 basis points.
Retail Turnover
In the group's retail division, turnover was down 0.6% compared to the same period last year, of €6.02 billion, with the group's fashion sales impacted by weather.
Fashion sales were 1.5% lower during the period, compared to the same period last year, however this was a stronger performance than the wider fashion market, which dropped by 3.6%, El Corte Inglés said.
EBITDA at its retail arm increased by 2.2% to €235 million.
Its Viajes El Corte Inglés tourism arm saw turnover increase by 4.6% to €1.56 billion, while its Information Technology business saw turnover drop 2.8% to €308 million. Lastly, the group's insurance division posted a 9.5% increase in turnover, to €104 million.
As a group, El Corte Inglés reduced its debt by €347 million during the period, with the company's debt now standing at €3.65 billion.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
