Inditex’s quarterly revenue reaches 2,768 million euros

2024-09-11 18:51:18

The Spanish textile group Inditex, owner of brands like Zara, has passed the halfway point of its fiscal year (February to July) and has once again demonstrated the stability of its upward business evolution, with profits reaching a record of 2,768 million euros. .

In the same period of 2023 it earned 2,513 million euros, which represented an increase of 40.1% year on year, and in 2022 it earned 1,794 million, which also showed an increase of 41%. However, the increase registered this time was 10.1%.

Group sales

The record figures were also reflected in the group’s sales for the first half of the year for the third consecutive year, although there was a slight slowdown in this year’s sales, which reached 18,033 million, with an increase of 7.2% compared to the previous year. .

All the brands of the group, as well as Zara – Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe – improved sales, led by Zara, with 13,033 million euros (671 million more than a year earlier) .

Presenting these accounts, its CEO, Óscar García Maceiras, highlighted to the analysts the “good operating performance” reflected in “a strong generation of funds”.

“Satisfied” with growth in Spain

He also highlighted the company’s “satisfaction” with the growth in Spain, where 27% fewer stores between 2019 and 2023 have sold “20% more”.

The group’s gross margin in the semester increased by 7.5%, to 10,541 million, to stand at 58.3% of sales (19 basis points more compared to the same period in 2023).

Regarding gross profit (ebitda), it reached an increase of 8.1% from February to July, up to 5,040 million.

In the second fiscal quarter alone (May to July) profit rose to an all-time high of 1,474 million, 9.6% more than a year earlier, while sales amounted to 9,910 million, representing an increase of 7.25%.

The results of Inditex – which will pay 0.77 euros per share as a dividend on November 4 – have been well received on the Stock Market, where more than two hours after the market opened it was still rising more than 4% and it was the one. the highest since the IBEX 35.

So far this year, the accumulated value of the stock market advance is close to 25%.

Summer is getting bigger and ‘Zara streaming’ has arrived

The group has announced that in-store and online sales at constant exchange rates between August 1 and September 8 this year rose 11% compared to the same period in 2023, confirming a summer in line with previous quarters’ results that.

Similarly, Inditex is preparing the premiere in the coming weeks in Spain and other important markets of the experience called ‘Zara Streaming’ or live sale of clothes with broadcasts on the internet, which has already been successfully launched in the market of China in 2023.

The textile multinational has announced that it will bring this initiative to the United States, France, Italy, Germany, the United Kingdom, Ireland, the Netherlands and Canada in the coming weeks.

Inditex therefore plans to continue expanding the streaming experience on its platforms to other markets in the coming months.

Regarding the second-hand clothing platform, which Inditex has already developed in 16 markets and in the fall announced that it would land in the United States, the management of the group confirmed that this landing in this last market will take place at the end of the month October.

Investments and logistics, important pieces

Spanish multinationals continue to profit from proximity provision. This, the company asserts, allows a quick response to customer demands and gives the business model great growth potential.

The Galician international emphasizes his “good operating performance”, reflected in “strong generation of funds”.

In this year, Inditex foresees normal investments of around 1,800 million, in order to increase operating capacity, gain efficiencies and increase differentiation.

Regarding the logistics expansion plan in 2024-2025, of which he has 900 million, the Chief Executive Officer explained that “it is making sufficient progress” and that the first tests of the new Zaragoza platform will begin between the months of May and June 2025.

The program, the manager specified, is also designed to “increase availability and access” to the brands’ products and “give customers what they require at the right time, place and way.”

Inditex rises more than 4% on the stock market

The textile group Inditex rose more than 4% on the stock market this Wednesday after presenting its results this Wednesday, in which it achieved a net profit of 2,768 million euros, 10.1% more, and increased its sales 7.25%. of the fiscal year (February to July).

Half an hour after the market opened, Inditex shares rose 4.05% and stood at 48.16 euros. So far this year, the stock is up 24.25%