Inditex reported a net profit of €3.095 million for the first nine months of the 2022-2023 fiscal year, covering February 1 to October 31. The company highlighted a 24% year‑over‑year increase in this period, according to a Wednesday release.
Group sales reached €23,055 million, up 19% from the previous year, and up 20% at constant exchange rates. Growth was positive across all geographic regions, marking a record period for both sales and profitability in the third quarter.
On a quarterly basis, the firm posted a profit of €1,305 million and sales of €8,211 million, representing an 11% increase year over year.
Gross profit totaled €13,532 million, rising 19% from the prior year and accounting for 58.7% of sales.
Similarly, the gross operating result or EBITDA climbed 20% to €6,520 million, while the net operating result or EBIT rose 27% to €4,177 million.
Russian influence
In the third quarter, €14 million was booked under Other results, in addition to a €216 million impairment recorded in the first quarter. The provision broadly reflects the impact of the Group stepping back from activity in the Russian Federation.
The CEO stated that in a challenging environment these results showcase the strength of Inditexs model, which blends fashion‑forward collections, a compelling shopping experience and a team deeply committed to profitable and sustainable growth. The comments were attributed to Oscar Garcia Maceiras, the company’s chief executive officer.
During the first nine months, traffic and store sales rose significantly, with the company stressing the importance of differentiating the Inditex store experience. Online sales continued to perform satisfactorily and surpassed the record set twelve months earlier.
The firm noted that operating expenses remained tightly controlled. While expenses were up 17% year over year, they grew at a slower pace than sales, and net cash rose to €9,980 million.
In the period, Inditex expanded in 30 markets and ended the nine months with 6,307 stores. The group also indicated it had temporarily preempted some inventory entries in 2022 to boost product availability amid potential supply chain tensions.
As of October 31, 2022, inventory was up 27%. The autumn and winter stock was deemed of good quality, and by December 8 of this year stock levels were running 15% higher year over year.
Predictions
Between November 1 and December 8, 2022, store and online sales rose 12% at fixed exchange rates compared with the same period in 2021. Inditex continues to see strong growth opportunities across its operations.
Key focus areas include enhancing fashion offerings, continually optimizing the customer experience, maintaining a commitment to sustainability, and retaining talent and motivation across the organization.
The ongoing progression of these lines is expected to sustain organic growth over the long term. The leadership underlines that the firms flexible and responsive approach, paired with near‑sourcing and seasonal adaptability, allows rapid fashion responsiveness and a unique market position. The fully integrated business model is seen as having significant growth potential.
Looking ahead, Inditex envisions growth through store investments, further development of online channels, and improvements in logistics platforms, with a clear emphasis on innovation, technology, and sustainability. Online sales are projected to account for more than 30% of total sales in 2024, with anticipated capital expenditure around €1,100 million in 2022. At prevailing exchange rates, the company expects a neutral effect on sales for 2022 and a stable gross margin of roughly ±50 basis points for the year.
All figures reflect ongoing assessments by Inditex, and the organization continues to align its strategy with market conditions and consumer behavior in North America and beyond. [Citation: Inditex press release].