Inditex rose 6% on the stock market after announcing its new record. quarter results. The shares of the textile company rose 4% at the opening of the session and are close to an all-time high at 36.90 euros per share. Just five days before the presentation of the first month’s accounts, the company led by Marta Ortega managed to return, for the third time in its history, to the club of companies with capital of over 100,000 million euros, together with the European giants. Like Louis Vuitton or TotalEnergies. In the first three months of the year, Inditex earned a profit of 0.375 euros per share compared to 0.244 euros in the same period of 2022.
In this morning’s results presentation, The company generated revenue of 7,611 million Euros In the first quarter of 2023, a net profit of 1,168 million euros was achieved, 12.89% more than the previous year and 53.68% above the 760 million euros recorded in 2022. Cost of sales increased by 11.90% to EUR 3,008 million, while gross margin increased slightly to 60.5% from 60.1% in the first quarter of the previous year.
The new spring/summer collection campaign developed by Inditex continues to be preferred by consumers. And good results have allowed the company to expand its business to new Asian countries such as Cambodia. Sales increased by 13% compared to the first quarter of 2022 up to 7,611 million euros. “Sales have been positive in all geographic regions and in all formats,” the company said in its results statement. This year, the company did not want to separate the physical store and online sales, which have a representative power of 30%. In recent years, Inditex has combined both sales channels, partially transforming its physical stores into collection points; This reflects the “company’s compliance with customer consumption habits,” as they explained from XTB.
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These figures represent a positive anomaly within the industry, as Inditex’s competitors offer financing that reflects a significant deterioration in consumption due to the rise in inflation and the gradual rise in interest rates worldwide. From XTB they say “Apparently Inditex is grafted or is the exception in the industry”. Due to the positive numbers offered, the Board of Directors will make a proposal to the General Assembly. Dividend confirmation of 1.2 euros per share from 2022 resultsPayment of two amounts of 0.6 Euros, the first paid on 2 May and the second to be delivered on 2 November 2023 at the end of the year.
Sustainable fund for startups
Investors are also looking for a possibility Fund created by Inditex to invest in sustainability-related initiatives. The news revealed by Bloomberg late last night that the project could be a venture capital fund or a main investor in a fund with other companies. However, the investment will be “relatively small” and the decision has not yet been made.