Zara-owner Inditex posts sales and profit growth
loading...
Business
In the first half period, Inditex recorded sales growth of 7.2 percent to reach 18.1 billion euros, showing a positive development both in stores and online. Sales were positive across all concepts. Sales in constant currency grew by 10.2 percent.
Commenting on the first half trading Óscar García Maceiras, Inditex CEO said in a statement: “The design and quality of our fashion proposition and the experience we offer our customers are, together with the efficiency and increasing sustainability of our operations, the keys to the solidity of these results. Our fully integrated model continues to generate opportunities for profitable growth across all concepts, regions and channels."
Inditex grows first half profit
The company’s gross profit for the period increased by 7.5 percent to 10.5 billion euros, and the gross margin increased 19 bps to 58.3 percent.
EBITDA increased 8.1 percent to 5 billion euros, EBIT increased 11.9 percent to 3.5 billion euros and PBT rose by 10.6 percent to 3.6 billion euros.
Net income for the first six month period increased by 10.1 percent to 2.8 billion euros.
nditex forecasts positive growth ahead
The company said that the autumn/winter collections have been very well received by the customers and store and online sales in constant currency between August 1 and September 8, 2024 increased by 11 percent versus the same period in 2023. In 2024, Inditex expects a stable gross margin.
In view of the strong future growth opportunities, Inditex is implementing a logistics expansion plan in 2024 and 2025 focused on business allocating 900 million euros per year to increase logistics capacities in each of the 2024 and 2025 financial years.
During the period under review, the company opened stores in 34 markets and at the end of the period Inditex operated 5,667 stores. The growth of annual gross space in the period 2024-2026 is expected to be around 5 percent.
Inditex has announced FY2023 final dividend of 0.77 euros per share, which will be paid on November 4, 2024.