Inditex, the parent company of renowned fashion retailer Zara, is taking further steps to streamline its corporate structure with the absorption of Kiddy’s Class, its children’s fashion chain. The merger was announced in the Official Gazette of the Mercantile Registry (Borme) and involves the dissolution of Kiddy’s Class España S.A. without liquidation. All assets and liabilities of Kiddy’s Class will be transferred to Zara España S.A. Through this strategic move, Zara España is set to assume the rights and obligations of Kiddy’s Class.

This decision aligns with Inditex’s previous announcement earlier this year to concentrate its efforts in children’s fashion on the Zara Kids line. As a result, Massimo Dutti Kids was discontinued, leading to the ultimate absorption of Kiddy’s Class. Zara’s children’s line is already available in numerous stores operated by the company. However, prior to the absorption, Kiddy’s Class boasted 128 standalone stores as of the end of 2018. According to Inditex’s latest quarterly report, as of October 31, 2022, Zara operated 53 standalone children’s stores.

The absorption of Kiddy’s Class falls in line with Inditex’s ongoing strategy to streamline its operating structure. Over the past few years, the company has merged its subsidiaries in Portugal, Italy, and the United Kingdom. By reducing its operating structure, Inditex has successfully optimized its operations and boosted efficiency.

In the recently announced third-quarter results of Inditex, the company showcased strong performance. In the first nine months of the year, Inditex reported a profit of 3.09 billion euros, marking a 24% increase compared to the same period in 2021. Additionally, sales reached 23.06 billion euros, reflecting a year-on-year growth of 19%.

With the absorption of Kiddy’s Class, Zara solidifies its position in the children’s fashion market and enhances its offering in this segment. Inditex’s ongoing efforts to streamline its corporate structure underscore its commitment to adapting to evolving market dynamics and positioning itself for sustained growth in the fashion industry.

Useful Links:
1. Zara Kids: Zara Official Website
2. Inditex Corporate Structure: Inditex Corporate Structure