In less than a month next September 13, inditex will present the results of the second fiscal quarter and therefore the first term, which runs from February 1 to July 31. In the first six months of last year, It posted a net profit of 1,794 million, up 41%. Compared to the same period last year. Sales reached 14,845 million, up 24.5%. Forecasts handled by experts for the first half of the year of the multinational company in Galicia predict that these figures will be exceeded and the growth will be in double digits. This good behavior shows that by the end of its fiscal year (January 31), it will reach a new historical record in revenue and profit, as in 2022, when the latter rose to 32,569 million in 2022 and the latter to 4,130.
The investment firm Jefferies was the last to publicly reveal its forecast for the results that Coruña will present on September 13. Put the revenue in the second quarter 8.994 million, 11% more than the previous year2,424 plus 11% more benefits. “The group continues to enjoy massive market share gains both globally and in the US, and the combination of a sharp decline in air freight costs, full-price sales and a weak US dollar position compared to the rest of the industry is supporting the group’s growth. achieve a flexible gross margin”, assures the New York company in its report.
If their forecasts are considered valid (if they fail, they are generally downward), the Galician textile company will close its first fiscal period with 12% more turnover of 16,605 million and 35% more profit of 2,424. Jefferies analysts believe the Zara owner’s “unique” supply chain gives him the “power to sell fashion more accurately than its competitors, allowing it to circumvent COVID-19 at lower discounts than others.” They also believe there should be opportunities for growth in market share. “In a world of uncertainty, Inditex offers solid gains in stock and 11.6 billion net cash in 2024 should support another exceptional dividend period”, they point.
In the second half of last year (the best sales season because it includes the Christmas campaign), the multinational made 17,724 million revenues and 2,336 profits. If he repeats (exceeds) these figures in the second half of the current fiscal year and is added to the figures expected by Jefferies in the first half, he will manage to exceed 34,000 million on the bill. years had achieved something that had never been done before. It will be 1,800 more than the previous year. And referring profits would reach 4,700, a number that he too could never achieve. 600 more than last year.
Analysis firm Jefferies also increased the share price of the company founded by Amancio Ortega to 40 euros from the previous 38 euros in its latest report. This means a potential increase of 17% compared to yesterday’s close (33.9 euros). “Consumer discretion remains a major favorite in our industry”, Appreciate the analysts of the A Coruña textile company who suggested you buy the titles. If 40 euros were reached, the market value of the Galician giant would exceed 124 million.
The company’s shares have gained 39% so far this year, with its market capitalization approaching almost 106,000 million. It is the only ibex with over 100,000 ibex. Its maximum value was reached on 30 June with 35.46 Euros.
Jefferies’ prediction is that Inditex stock will repeat the same pattern as in previous cases as the results presentation approaches: a high rise days ago, a strong rise after learning what it gained, and then, vesting period due to profit making.
Another company that has just increased the target price of the shares of the company headed by Marta Ortega is the American multinational financial institution Morgan Stanley. In this case, up to 37 euros compared to the previous 34.
And a month ago, Citi raised the target price of the Galician textile company’s shares from 35 to 38 euros and reiterated its buy recommendation like other analysts. “Inditex Europe remains our number one choice for on-demand retailthanks to strong sales momentum and an industry-leading economy,” says the world’s largest financial services company, headquartered in New York.
On the whole, Inditex maintains the confidence of analysts: the average of the stock-covering analysis companies gives buy advice to the stocks and is 6.5% above the current price, with a target price of 36.26 euros.