Companies

Inditex profits soar by 40% in the first half

Sep 14, 2023 Spain

The Spanish-based fashion group, which owns, among others, Zara and Massimo Dutti, posted a strong performance in the first half of 2023, marked by significant growth in profits

“The 1H2023 results demonstrate that the talent of our teams continues to consolidate the improvements in the performance of our business model. The ongoing commitment to creativity, quality and customer experience, as well as the determined progress in sustainability, drives a strategy that is taking our business to the next level”, commented Óscar García Maceiras, CEO of Inditex.

First Half Results

In the first semester of fiscal 2023, the group's sales increased by 13.5%, on a comparable basis to the same period of last year, reaching 16.9 billion euros. According to the interim results reported, sales showed “very satisfactory development both in stores and online”, across all geographical areas and concepts. In constant currency, sales grew by 16.6% year-over-year.

Inditex's gross profit totalled 9.8 million euros in the first half of the year, up by 14.1% as compared to a similar period of 2022, and its gross margin widened by 27 basis points to 58.2%.

In the six months to the 31^st of July, the company's EBITDA rose by 15.7%, reaching 4.7 billion euros, on a comparable basis to the same period of the previous year. In addition, its EBIT amounted to 3.2 billion euros, increasing by 30.2%, and its profit before taxes jumped by 39% to 3.3 million euros, as compared to the first half of last year.

At last, the Spanish-based Inditex recorded a net income growth of 40.1% in the first half of 2023, reaching 2.5 billion euros, on a comparable basis to the same semester of the prior year.

Outlook

The fashion group added that it “continues to see strong growth opportunities”, and that its key priorities “are to continually improve the fashion proposition, to enhance the customer experience, to increase our focus on sustainability and to preserve the talent and commitment of our people”.

Image Credits: malemodelscene.net

Spain Fashion Inditex Quarter Results Results