The textile group achieved a profit of 1,294 million in its first quarter. Sales are growing by single digits for the first time since the end of the pandemic due to the currency effect, but profitability continues to rise.
Inditex takes its foot off the accelerator in its growth, although it continues to travel on the highway of records. The textile giant ended its first quarter of the year (from February to April) with a turnover of 8,150 million euros, a 7.1% more, the highest figure in its history in this period and in line with analysts’ forecasts.
The data shows a slowdown, since in the same period of the previous year the company increased
Inditex takes its foot off the accelerator in its growth, although it continues to travel on the highway of records. The textile giant ended its first quarter of the year (from February to April) with a turnover of 8,150 million euros, a 7.1% more, the highest figure in its history in this period and in line with analysts’ forecasts.
The data shows a slowdown, since in the same period of the previous year the company increased its sales by 13%, and it marks the first time since the end of the pandemic that Inditex has grown by a single digit. However, this circumstance was impacted by the currency effect, which subtracted more than 3 points from the group’s growth. Excluding the effect of exchange rates, revenue increased 10.6%.
One of the key aspects in the company’s picture is that it continues to gain profitability and expand its margins quarter after quarter. The gross margin grew by 7.3% between February and April, up to 7,940 million, and now represents 60.6% of sales. This is the highest figure in the history of the group, although it is two tenths lower than what analysts predicted.
Operating expenses grew 6.4%, less than sales, specifically 110 basis points if lease charges are also included. The result was an ebitda of 2,370 million euros in the first quarter, 8% more, and an operating result (ebit) of 1,636 million, 10.3% more.
The figures improve as you go down the income statement. Inditex has slightly beaten analysts’ forecasts with a net profit of 1,294 million in the quarter, 10.8% more, which is once again a record for the company and puts it in line to end the year for the first time. with profits above 6,000 million.
Positive forecasts
The owner of Zara has reported a start to the second quarter of the year with a growth in sales at constant exchange rates of 12%, which represents an improvement compared to the first quarter. The company expects a negative effect on its sales of two points for the year as a whole due to exchange rates.
The group, which insists on the message that it has many opportunities for growth, has set as priorities “the continuous improvement of our fashion proposal, the optimization of the customer experience, the advancement of sustainability and the preservation of talent and commitment.” of our people”.
The owner of Zara expects its gross space to grow by 5% annually in the period 2024-2026. “The store optimization process is an ongoing task,” the company said. Inditex, with a presence in 214 markets, ended April with 5,698 stores in the world, 103 less than a year before. The group has just opened its first stores in Uzbekistan and has reopened 48 stores in Ukraine.
