Zara-owner Inditex's nine-month profit jumps
Sales at Inditex reached 23.1 billion euros in the first nine months of 2022, up 19 percent, or up 20 percent in constant currencies.
EBITDA in the same period increased 20 percent to 6.5 billion euros, EBIT increased 27 percent to 4.2 billion euros, and PBT increased 25 percent to 4 billion euros. Net income for the period increased 24 percent to 3.1 billion dollars.
Commenting on the preliminary trading update, Inditex CEO Óscar García Maceiras said: “In the current challenging context, these results clearly reflect the strength of our unique business model: fashionable collections, an appealing shopping experience and a team highly committed to achieving achieve profitable and more sustainable growth”.
Sales growth across markets
The company added that sales were positive in all geographic areas, and Inditex’s traffic and store sales increased markedly. Key to this was store differentiation, it said. With new store openings in 30 markets, at the end of the period, the company operated 6,307 stores.
The company’s gross profit increased 19 percent to 13.5 billion euros and gross margin reached 58.7 percent.
At current exchange rates Inditex expects a neutral currency impact on sales in FY2022. Based on current information, Inditex expects a stable gross margin (+/-50 bps) for FY2022.
Store and online sales in constant currency between November 1 and December 8, 2022 increased 12 percent versus the same period in 2021.
The company further said results for FY2022 will be published on March 15, 2023.