inditex net profit announced €3.095 million For the first nine months of the 2022-2023 fiscal year (February 1 to October 31), 24% increase Compared to a year ago, as reported by the company on Wednesday.
Group sales amount 23,055 million eurosIt was 19% more (+20% at constant exchange rates) compared to the same period in 2021 and positive in all geographic regions.
Thus, Inditex reaches all-time high sales and profits in the third quarter. to make a profit of 1,305 million in the quarter and 8,211 million sales, 11% more.
Gross profit amounted to EUR 13,532 million, up 19% year-on-year, representing 58.7% of sales.
Likewise, gross operating result (Ebitda) increased by 20% to €6,520 million and net operating result (Ebit) increased by 27% to €4,177 million.
Russian influence
In the third quarter of the fiscal year, an expense of € 14 million is included in ‘Other results’, in addition to the outstanding expense of € 216 million recorded for the first quarter.
Inditex, that The provision covers “to a large extent” the effect of the Group’s discontinuation of its activity in the Russian Federation.
“In a very challenging environment, these results clearly demonstrate the strength of our unique model: collections with high fashion components, an attractive shopping experience and a team of people who are extremely committed to achieving profitable and more sustainable growth,” said Inditex CEO. Oscar Garcia Maceiras.
During the first nine months of your fiscal year, traffic and store sales increased significantly and, as the company emphasized, it was very important for the Inditex stores to differentiate.
Online sales continue to move “satisfactorily” and are above the record reached a year ago.
The group also underlined that the control of operating expenses is “tight”. Operating expenses increased by 17% year-on-year, below sales growth, while net cash reached €9,980 million.
In the first nine months of your fiscal year, Inditex opened in 30 markets and reached 6,307 stores at the end of the period..
Likewise, Inditex has temporarily anticipated inventory entries in 2022 to increase product availability in the face of potential tensions in the supply chain.
As of October 31, 2022, inventory increased by 27%. The autumn-winter inventory is considered to be of good quality, and as of December 8 this year, stock levels are growing by 15% annually.
predictions
On the other hand, between November 1 and December 8 of this year, store and internet sales increased by 12 percent compared to the same period of 2021 at fixed exchange rates.
Inditex stressed continues to see “strong” growth opportunities.
The priority areas of action are: continuing to improve the fashion offering, continually optimizing the customer experience, maintaining a focus on sustainability, and retaining people’s talent and commitment.
The evolution of these lines will continue to sustain organic growth in the long run.
“The flexibility and responsiveness of the business, combined with seasonal, close sourcing allows for rapid response to fashion trends and a unique position in the market. Our fully integrated business model has great growth potential,” the signature underlined.
The future growth of the group, as he explains, is based on investments in stores, developments in the online sales channel, and improvements in logistics platforms with a clear commitment to innovation, technology and sustainability.
Inditex, Online sales exceed 30% of total sales in 2024 and we estimate the usual investment in 2022 to be around EUR 1,100 million.
At current exchange rates, Inditex expects a neutral exchange rate effect on sales in 2022. Based on current information, Inditex expects a stable gross margin (+/-50 basis points) for 2022.