Companies

Inditex reports solid nine-month results

Dec 13, 2024 Spain

The Spain-based fashion group reported robust sales growth and healthy margins, driven by strong reception of its Autumn/Winter collections and integration of store and online operations

Inditex reported results for the 9 months from the 1^st of February 2024 to the 31^st of October 2024. The group demonstrated solid operating performance during this period, partially driven by the integration of its store and online business models.

The Autumn/Winter collections were well-received by customers. Sales in constant currency increased by 10.5% compared to the same period in 2023. Total sales grew 7.1% year-over-year, reaching 27.4 billion euros.

The company also maintained healthy margins, with gross profit rising by 7.2% on a comparable basis to 16.3 billion euros and a gross margin of 59.4%. Operating expenses grew at a slower pace than sales, reflecting efficient cost management.

Inditex’s finances remained solid, with EBITDA increasing by 7.2% to 8.0 billion euros compared to the same period last year and pre-tax profit growing by 9.9% to 5.8 billion euros. Net income rose by 8.5% to 4.4 billion euros compared to the previous fiscal year.

Inventory as of the 31^st of October 2024 was 2.6% lower than the same date in 2023, reflecting stock quality. Inditex opened stores in 45 markets during the period, concluding the quarter with 5,659 stores worldwide.

Outlook

The company’s outlook for the remainder of the fiscal year and beyond remains optimistic. Store and online sales for the Autumn/Winter season, between the 1^st of November and the 9^th of December 2024, increased by 9% year-over-year.

Inditex anticipates stable gross margins and plans to continue prioritising customer experience, sustainability and operational efficiencies.

The group is making investments, including a 1.8 billion euros annual capital expenditure for 2024 and a two-year logistics expansion programme of 900 million euros annually to enhance capabilities and sustainability.

Looking ahead, Inditex sees growth potential in a fragmented sector. Between 2024 and 2026, it plans to optimise stores and expand annual gross space by 5%. The company expects a solid increase in both physical and online sales.

Image Credits: inditexcareers.com

Spain Companies Fashion Inditex Quarter Results Results