2023-09-13 16:29:50
Inditex has done it again: it has shattered its own records and has climbed above the forecasts made by analysts. The textile giant earned 2,513 million euros in this first half of its 2023-2024 fiscal year (from February to July), which represents an increase of 40% compared to last year, as reported by the company this Wednesday. Thus, for the first time, it surpasses the barrier of 2,500 million net profits in the first six months of the year and does so in a context of economic uncertainty marked by an inflationary crisis that has a considerable impact on companies’ costs.
Sales also grew by 13.5% and reached 16,851 million, another historic figure, with a “very satisfactory” evolution both in store and online and increases in all geographical areas and in all formats, while sales At constant exchange rates they achieved a greater increase of 16.6%.
Despite these excellent results, Inditex shares plummeted on the stock market by more than 4% until they were trading at a price of 34.30 euros, although this fall was corrected throughout the session. Some analysts warn that “the best may already be discounted” and consider that “doubt continues to be about the company’s ability to maintain this leading position and whether it will be able to maintain global scalability quickly and efficiently.”
For its part, the gross operating result (Ebitda) grew by 15.7%, to 4,663 million, while the net operating result (Ebit) rose by 30.2%, to 3,164 million. Another proof of its strength is a 14.1% increase in gross margin to 9,801 million, which thus stood at 58.2% of sales, which represents 27 basis points more.
Another proof of the strength that the company that Marta Ortega has chaired for a year and a half is presenting is a 14.1% increase in gross margin to 9,801 million euros, which thus stood at 58.2% of sales. which represents 27 basis points more than in the first half of the previous year. In 2023, Inditex expects a stable gross margin (+/-50 basis points).
“The permanent commitment to creativity, product quality and customer experience, as well as decisive progress in sustainability, make up a strategy that takes our business model to a higher level,” highlighted the CEO, Óscar García Maceiras. .
Good forecasts for the end of the year
A “superior level” that has made them grow double digits in all their business lines. The highest percentage increase was recorded by Oysho, 18.3%, although it is the brand that offers the least income, below 300 million. The second line that increased the most was Stradivarius, almost 18%, and, in third place, Massimo Dutti (16.8%). Zara, including Zara Home, rose 13.1%, to 12,362 million, representing 73.3% of its total turnover.
The Galician company highlights that “the collections of the spring/summer campaign were very well received by customers,” but also suggests that they have high hopes for the second semester that has already begun, which may be better than this first, since Sales are growing a little more, 14% in store and online at constant exchange rates between August 1 and September 11, 2023. «The collections of the autumn/winter campaign have been very well received by our customers,” says the textile giant.
That is why the company founded by Amancio Ortega continues to see “great opportunities for future growth” and that is why this year it is making investments to increase operational capacity, obtain efficiencies and increase differentiation to the next level. Specifically, he estimates ordinary investments of around 1.6 billion euros in 2023.
The largest Zara in the world
«Our priorities are to continuously improve our fashion proposal, optimize the customer experience, increase our focus on sustainability and preserve the talent and commitment of our people. Prioritizing these areas will drive long-term growth,” the company stressed, noting that “the result is a unique market positioning,” which provides its business model with “great potential.”
For this reason, Inditex continues with its store optimization policy and has 5,745 establishments, 625 less than in 2022. However, it maintains its commitment to increasingly larger establishments and proof of this is that this fall it will open in Rotterdam (Netherlands). ) the largest Zara in the world, with an area of more than 9,000 square meters, which will overtake the Gran Vía in Madrid.
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