Inditex registered Achieved a net profit of 4 billion 102 million euros in the first nine months of the 2023-2024 financial year (between February 1 and October 31) represents an increase of 32.5% compared to the previous year, as reported by the company this Wednesday.
The group’s sales increased by 11.1%, reaching 25 billion 609 million Euros. A “very satisfactory” development positive both in-store and online, in all geographic regions and in all formats. In the third quarter, they reached 8 billion 758 million euros, an increase of 6.7% compared to a year ago, after a series of ten consecutive quarters with double-digit increases.
With the autumn-winter campaign collections being “very positively received” by customers, sales increased by 14.9% at constant exchange rates.
Similarly, gross profit margin increased by 12.3% to 15 billion 203 million euros, reaching 59.4% of sales (+67 basis points compared to the previous year).
The company ensures that all expense lines showed a positive development. Operating expenses increased 10.6% below sales growth and, including all lease expenses, were 130 basis points below sales growth.
“The implementation of the business model is extremely outstanding. In addition, the autumn-winter 2023 campaign saw a normalization of supply chain conditions and a more favorable euro-dollar exchange rate compared to the same 2022 campaign,” the company said. said. .
Likewise, the operating result (EBIT) increased by 13.9% to 7 billion 429 million Euros, while the net operating result (EBIT) increased by 24.3% to 5 billion 192 million Euros. profit before tax 29.8%, It reached 5 billion 238 million euros.
In the first nine months of the 2022 financial year, Inditex allocated 231 million euros to the ‘Other Results’ line for estimated expenses for the 2022 financial year in the Russian Federation and Ukraine.
Net cash increased by 15% compared to the previous year, reaching 11 billion 480 million euros.
The company, which made openings during this period, said: “In the first nine months of the financial year, Inditex maintained its strong operational performance, supported by the creativity of its teams and the good implementation of its integrated store and online business model.” said. in 36 markets. At the end of the period, Inditex had 5,722 stores.
Inventories decreased by 5% as of October 31, 2023, compared to the same date last year, due to strong operational performance and normalization in supply chain conditions in the first nine months of fiscal 2023.
Predictions
According to At the beginning of the fourth quarter of fiscal year 2023, Inditex emphasized that its autumn-winter campaign collections were “very well received” by its customers.
Thus, between November 1 and December 11, 2023, in-store and online sales at a fixed exchange rate increased by 14% compared to the same period in 2022. In this context, Inditex emphasized that it continues to see the great opportunities of the future. growth.
“Our priority is to continually improve our fashion offer, optimize the customer experience, increase our focus on sustainability and retain the talent and commitment of our employees. Prioritizing these areas will support long-term growth,” he said.
Inditex has a presence in 213 markets. It has a low share of each and is in a highly fragmented industry, so it sees “strong growth opportunities.”
We continue to forecast an incremental increase in sales efficiency in our stores. “The gross growth of the area in 2023 will be around 3% and the task of optimizing the stores continues,” he said. Sales in 2023 are positive.
Likewise, the company continues to experience an experience. “Very positive” development in online sales expects its participation in the group’s total sales to increase.
Based on current exchange rates, we expect a -4% currency impact on sales in 2023. Based on available information, Inditex expects a gross margin of approximately 75 basis points higher in fiscal 2023 than in 2022.
In the current fiscal year, investments are being made to increase operational capacity, ensure efficiency and increase differentiation to a higher level. The company foresees ordinary investments of approximately 1.6 billion euros in 2023.