Zara-owner Inditex reports sales and profit growth

Inditex sales grew 13 percent in the first quarter to 7.6 billion euros, showing positive development both in stores and online. Sales in constant currency grew 15 percent.

The company said in its Q1 interim results that sales were positive in all geographical areas and in all concepts. In the first quarter, Inditex opened stores in 17 markets and operated 5,801 stores at the end of the period.

The company’s gross profit increased 14 percent to 4.6 billion euros and gross margin reached 60.5 percent, up 34 bps.

EBITDA for the quarter increased 14 percent to 2.2 billion euros, while EBIT increased 43 percent to 1.5 billion euros and PBT 52 percent to 1.5 billion euros.

Soaring profits

Net profit increased 54 percent to reach 1.2 billion euros compared to the first quarter of 2022.

Commenting on the outlook, the company added that its spring/summer collections “continue to be very well received by our customers”.

Between May 1 and June 4, store and online sales in constant currency increased 16 percent versus the same period in 2022.

The company added: “Inditex started operations in Cambodia in May, with the opening of a Zara flagship store in Phnom Penh at Chip Mong Mega Mall and the launch of online sales in the market through zara.com/kh.”

As approved in March 2023, Inditex’s board of directors will propose a dividend for FY2022 of 1.20 euros.