Bloomberg — Inditex SA shares rose to their highest level since the retailer’s initial public offering in 2001, as analysts become increasingly optimistic ahead of its third-quarter results.
The owner of Zara gained up to 1.7%, to 36.95 euros, in Tuesday’s operations in Madrid, expanding its gain so far this year to close to 50%.
The retailer’s fast fashion business model and online presence have helped the stock outperform a retail sector that is the top performer in Europe this year. The Stoxx Europe 600 retail index is up 26% in 2023 as customers flock to stores following pandemic-induced closures.
Inditex is scheduled to announce its results on December 13, and analysts expect the Spanish company to post a record quarterly net profit, according to data compiled by Bloomberg.
Inditex shares are headed for a record close | Zara owner hits highest since 2001 IPO ahead of earnings report
Morgan Stanley analyst Grace Smalley says an improvement in Inditex’s gross margin could serve as a “bright spot” during the third quarter, amid headwinds from unusually warm weather and adverse currency movements.
“Inditex continues to outperform and gain market share, driven by the company’s continued expansion of its competitive advantage and its differentiation in product and store experience relative to its peers,” Smalley wrote in a note, in the which raises its bullish and bearish objectives for the value, but maintains its target price of 38 euros unchanged.
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