Fast fashion retailer Zara India has posted a loss of Rs 41 crore for the financial year ended March 31, 2021. Its revenue also slumped by 28.3 per cent to Rs 1,126 crore during the fiscal year, according to the annual report released by Trent Ltd.
“During the year under review, the Zara entity recorded revenues of Rs 1,126 crore and loss after tax of Rs 41 crore,” Trent Ltd said in its earnings statement.
Zara operates in India through Inditex Trent Retail India Private Limited (ITRIPL), a JV between the brand’s parent company Inditex and Tata Group company Trent Limited.
The company had reported a net profit of Rs 104.05 crore and revenues of Rs 1,570.54 crore in the financial year 2019-20.
“The incremental store openings for Zara continue to be calibrated with focus on presence only in very high-quality retail spaces,” the company statement said.
ITRIPL currently operates 21 Zara stores in India across 11 cities.
Trent has two separate associations with Inditex — one to operate Zara stores and the other for Massimo Dutti stores in India. Massimo Dutti also reported a 49.3 per cent fall in its revenues of Rs 34 crore in FY21. It had recorded a revenue of Rs 67 crore in FY20.