Inditex Reports Record Results and Expands Global Reach
Inditex shares rose about 6% in early trading after the company posted a new quarterly record. The stock opened higher, gaining around 4%, and traded near a historic peak at 36.90 euros per share. Under the leadership of Marta Ortega, the group rejoined the elite club of firms with market capitalization above 100 billion euros, joining European giants such as Louis Vuitton and TotalEnergies. In the first quarter, Inditex earned 0.375 euros per share, up from 0.244 euros in the same period the previous year.
During this morning’s results presentation, the company reported quarterly revenue of 7,611 million euros and a net profit of 1,168 million euros. The year-over-year increase stands at 12.89%, while profitability also exceeded 2022 figures by 53.68%, when net income reached 760 million euros. Cost of sales rose by 11.90% to 3,008 million euros, with the gross margin marginally improving to 60.5% from 60.1% the prior year.
The spring/summer collection campaign continues to resonate with consumers, supporting robust results. This momentum has enabled Inditex to extend its footprint into new Asian markets, including Cambodia. Sales grew 13% year over year to reach 7,611 million euros in the first quarter. The company noted positive performance across all geographic regions and formats, signaling broad consumer demand. This year, Inditex did not separate physical and online channels; together they account for about 30% of total sales. In recent years, the retailer has integrated its stores with online shopping, sometimes converting physical locations into collection points to align with evolving shopping habits, a strategic shift highlighted by market commentators. [Source: market observers]
Related news has pointed to a favorable anomaly within the retail sector. While many peers are facing tighter financing and weaker consumer spending amid inflation and higher interest rates, Inditex has shown resilience. Market analyses suggest Inditex is either exceptional or better positioned than much of the industry in the current environment. Given the strong numbers, the company’s Board plans to present a proposal at the General Assembly and to confirm a dividend of 1.2 euros per share for 2022 results. The payout schedule includes two installments of 0.6 euros each, with the first on May 2 and the second on November 2, 2023. [Source: financial briefings]
Sustainable Fund for Startups
Investors are watching for a new Inditex initiative focused on sustainability. Bloomberg reported late last night that the company may create a venture capital fund or act as a lead investor in a fund with other companies. The planned investment is expected to be relatively modest, and no final decision has been made yet. [Source: Bloomberg]