2023-06-07 15:27:06
Inditex registered a net profit of 1,168 million euros during the first quarter of its 2023-2024 fiscal year (between February 1 and April 30), which represents an increase of 54% compared to a year earlier, thanks to a “strong” operational performance, as reported by the group on Wednesday. Moreover, without the provision of 216 million euros for Russia and Ukraine made in the first quarter of 2022, the net profit would have been 940 million euros.
Sales grew by 13% and reached 7,611 million euros, with a “very satisfactory” evolution both in store and in the ‘online’ channel. The fashion group founded by Amancio Ortega highlighted in a statement that sales have been positive in all geographical areas and in all formats.
Likewise, the gross margin grew by 14% to 4,603 million euros and stood at 60.5% (34 basis points more). And operating expenses grew 13%, below sales growth. The operating result (Ebitda) grew by 14%, to 2,195 million euros, while the net operating result (Ebit) grew by 43% to 1,483 million.
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In the first fiscal quarter, the company has opened in 17 markets. At the end of the period, Inditex operated 5,801 stores.
Facing the second quarter, the company stressed that the spring-summer collections continue to be “very well received” by its customers. Thus, store and online sales at a constant exchange rate between May 1 and June 4, 2023 have grown by 16% compared to the same period in 2022.
Second hand
One of the projects that the Galician multinational is working on is in its second-hand format called Zara Pre-Owned, which was launched at the end of 2022 in the United Kingdom and which will be available in France, Germany and Spain in the coming months. as indicated by the CEO, Óscar García Maceiras, in the presentation of the results.
Although at first the idea was that this format would reach Spain later, the company will finally launch the platform before the end of the year in our country. The objective is for customers to extend the useful life of their garments through donation, repair or sale between individuals within their sustainability policy.
In this way, the group offers the opportunity to repair, resell or donate second-hand Zara garments. The project is available in stores, on the web and through the mobile application. Specifically, with the repair service, customers will be able to request alterations to any used Zara garment from any season, ranging from replacing buttons and zippers to repairing seams. The customer can carry out the process entirely ‘online’ or in the Zara store of their choice.
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