Zara-owner Inditex 2023 sales and profit jump

In 2023, Inditex sales grew 10.4 percent to reach 35.9 billion euros with positive development both in stores and online and in all geographical areas and concepts. Sales in constant currency grew 14.1 percent.

The company said that store and online sales in constant currency increased 11 percent between February 1 and March 11, 2024 versus the same period in 2023.

At current exchange rates, Inditex expects a 1.5 percent negative currency impact on sales in 2024 and projects a stable gross margin.

Commenting on the annual trading results, Oscar García Maceiras, the company’s CEO said: "Our teams have been able to take advantage of the opportunities to keep growing profitably. We are investing to drive future growth and continue to offer an attractive remuneration to shareholders".

In 2023, Inditex opened stores in 41 markets. During the year, Zara opened its first store in Cambodia.At the end of FY2023 Inditex operated 5,692 stores.

The company’s store sales grew 7.9 percent reflecting incremental footfall and increasing store productivity, while online sales also grew 16 percent to reach 9.1 billion euros.

Gross profit increased 11.9 percent to 20.8 billion euros, while gross margin reached 57.8 percent. EBITDA increased 13.9 percent to 9.9 billion euros and EBIT 23.4 percent to 6.8 billion euros. PBT increased 28.2 percent to 6.9 billion euros and net income increased 30.3 percent to 5.4 billion euros.

The company’s board of directors will propose to the AGM a dividend increase of 28 percent to 1.54 euros per share for FY2023, composed of an ordinary dividend of 1.04 euros and a bonus dividend of 0.50 euros per share.

Inditex has announced a two-year extraordinary investment programme focused on the expansion of the business, allocating 900 million euros per year to increase logistics capacities in each of the 2024 and 2025 financial years.