Inditex has reported a strong start to the 2022-2023 fiscal year, with net profit reaching 760 million euros in the first quarter spanning February 1 to April 30. This figure marks an 80% increase from the prior year, attributed to robust performance across its operations and the leadership of the group under the current president. The company also announced a reserve intended to cover expenses arising from the Ukraine-Russia situation, set at 216 million euros. This allocation is reflected in the other results line; excluding it, net profit would stand at 940 million euros.
Sales rose 36%, reaching 6,742 million euros, driven by a solid rebound in in-store traffic and favorable reception of the seven brands offered by the group. Inditex emphasized that growth remained solid across geographic regions, with the exceptions of Ukraine and Russia where stores and online platforms faced temporary closures from late February to early March, and China where 67 stores were shuttered.
The United States market was described as remarkable, continuing to expand and cementing itself as the second-largest market for the group. Online sales also demonstrated sustained strength, nearly maintaining the 67% growth seen in the first quarter of 2021, though they were slightly lower than the same period last year.
Inditex chief executive officer Óscar García Maceiras noted that the outcomes reflect the result of a differentiated, highly functional model. He highlighted the robustness and adaptability of the business framework and praised the strong performance of the creative, commercial, and operational teams. These efforts further differentiate its offering through a clear focus on innovation, digitalization, and sustainability.
The gross profit margin on sales reached 60.1%, the highest level in the past decade, with operating expenses growing 24% at a pace slower than sales. The gross operating result, or EBITDA, rose 55% to 1,917 million euros, while the net operating result, or EBIT, increased 82% to 1,034 million euros. The group continued to reinvest in growth, supported by solid cash generation, resulting in a net financial position of 9,189 million euros, up 28% year over year. The balance sheet strength underscores Inditex’s capacity to sustain expansion and reinforce its market positions across key regions.