Companies

Inditex reports strong performance

Dec 14, 2023 Spain

The owner of Zara continues to perform strongly. In the first nine months of 2023, its sales and profits grew by 11% and 33%, respectively, as compared to the same period of last year

“Inditex continued with a very robust operating performance due to the creativity of the teams and the strong execution of the fully integrated business model”, reads the company’s statement.

At the end of October, the group’s sales totalled 25.6 billion euros, reflecting an increase of 11.1%, on a comparable basis to the same months of 2022; in constant currency, sales grew by 14.9% year-over-year.

Inditex emphasised that “the Autumn/Winter collections have been very well received” by customers and that sales showed a “very satisfactory development both in stores and online”.

The group’s gross profit increased by 12.3% in the first nine months of the year to 15.2 billion euros, while its gross margin improved by 67 basis points to 59.4%, as compared to a similar period a year ago.

In the nine months to the 31^st of October, the company’s EBIT reached 5.3 billion euros, up by 13.9%, and its profit before taxes amounted to 5.2 billion euros, up by 29.8%, on a comparable basis to the same period of last year.

The Spanish-based fashion group also posted a net income increase of 32.5% in these nine months to 4.1 billion euros, as compared to a similar period of the previous year.

Fourth Quarter Update

Between the 1^st of November and the 11^th of December, Inditex’s store and online sales in constant currency grew by 14% against the same period of last year.

Image Credits: thefashionisto.com

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