Zara owner Inditex records sales and profit growth
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In the first quarter of 2024, Zara owner Inditex reported sales growth of 7.1 percent to reach 8.2 billion euros, while sales in constant currency grew 10.6 percent.
Gross profit for the quarter increased 7.3 percent to 4.9 billion euros and gross margin reached 60.6 percent, up 13 bps. EBITDA increased 8 percent to 2.4 billion euros and EBIT increased 10.3 percent to 1.6 billion euros.
The company’s PBT rose 11.1 percent to 1.7 billion euros, while net income increased 10.8 percent to 1.3 billion euros.
Inditex expects retail expansion to boost sales
The company said in a release that spring/summer collections continue to be well received by the customers and store and online sales in constant currency between May 1 and June 3, 2024 increased 12 percent versus the same period in 2023.
During the first quarter, the company opened stores in 28 markets. On February 29, Inditex launched its first stores in Uzbekistan at Tashkent City Mall, while on April 3, Inditex reopened 19 stores of across seven brands and resumed online operations in Ukraine. At the end of the period, the company operated 5,698 stores.
In the period 2024-2026, Inditex expects space contribution to sales to be positive, in conjunction with a strong evolution of online sales. At current exchange rates, the company projects a negative 2 percent currency impact on sales in FY2024 with a stable gross margin.
Inditex board to propose dividend of 1.54 euros per share
At the upcoming AGM, Inditex’s board of directors will propose a dividend for FY2023 of 1.54 euros per share divided in two equal payments of 0.77 euro per share.
The board will also propose the renewal of Baroness Denise Kingsmill and the appointment of Belén Romana García as independent board members and Flora Pérez Marcote as proprietary director.
Pérez Marcote has been acting as legal representative of Pontegadea Inversiones, whose tenure will not be renewed due to an amendment in the Spanish Companies Act.
The company also announced that Anne Lange will leave the board once her tenure expires on July 14, 2024.