NEW YORK — Jose Maria Castellano has resigned as vice chairman of Spanish retailer Inditex, parent of fast-fashion chain Zara.
In a brief statement Friday, Inditex thanked Castellano for his “brilliant contribution” and long service at the retailer. Inditex said Castellano, who is credited as the architect of Zara’s global success story, left for “personal reasons.”
In February, the company said it was reorganizing its top management, and named Castellano, who had been chief executive officer, as vice chairman. At the time, a spokesman for the retailer called the change “preparation for expansion plans” as it looked to double its size over the next five years.
In June, Pablo Isla was named ceo of the company, succeeding Castellano. Amancio Ortega, Inditex’s founder, remains chairman.
Last week, the company reported a 40 percent gain in second-quarter profits. Results were fueled by store launches as well as a 4.5 percent gain in same-store sales. Net income for quarter ended July 31 rose to 121 million euros, or $154 million, as sales climbed 21 percent to 1.41 billion euros, or $1.8 billion. Results beat analysts’ expectations.
In the first six months of the year, Inditex opened 160 stores, and it plans to open between 400 and 450 stores. Zara accounted for 66 percent of Inditex’s sales in the first six months. Sales at the chain grew 15 percent in the first half to 1.85 billion euros, or $2.4 billion. As of July 31, there were 762 Zara stores, which is up from 653 stores a year ago. The company said it was on track to open 125 to 135 Zara stores by yearend.
This story first appeared in the September 26, 2005 issue of WWD. Subscribe Today.