Inditex Parent Company of Zara Achieves €8.2 Billion Sales in Q1 2024 With €1.3 Billion in Net Profit

Inditex Parent Company of Zara Achieves €8.2 Billion Sales in Q1 2024 With €1.3 Billion in Net Profit

Inditex has reported a robust performance in the first quarter of 2024, driven by creative teams and strong execution of their integrated business model. The Spring/Summer collections have been well-received, resulting in significant growth in sales and profits.

Key Highlights:

  • Sales Growth: Sales increased by 7.1% to €8.2 billion.

  • Profit Margins: Gross profit grew by 7.3% to €4.9 billion, with a gross margin of 60.6%.

  • Expense Management: Operating expenses increased by 6.4%, below the sales growth rate.

  • EBITDA and EBIT: EBITDA rose by 8% to €2.4 billion, and EBIT increased by 10.3% to €1.6 billion.

  • Net Income: Net income saw an increase of 10.8%, reaching €1.3 billion.

  • Cash Flow: Cash from operations increased significantly.

  • Store Expansion: Inditex opened stores in 28 markets, including the first stores in Uzbekistan and reopened stores in Ukraine.

  • Inventory Management: Inventory levels were 3% lower compared to the same period last year.

  • Dividend Proposal: A dividend of €1.54 per share for FY2023, with interim and final payments in May and November 2024 respectively.

Financial Overview (in € million)

Metric30 April 202430 April 2023
Sales8,2007,654
Gross Profit4,9664,629
Gross Margin (%)60.660.5
Operating Expenses3,0662,882
EBITDA2,4002,222
EBIT1,6001,451
Net Income1,3001,174
Cash and Cash Equivalents7,6686,572
Short-term Investments3,9783,950
Current Financial Debt(22)(14)
Net Financial Cash (Debt)11,62310,508
Inventories3,5663,680
Receivables1,1311,023
Payables(10,126)(8,765)
Operating Working Capital(5,429)(4,062)

Inditex continues to see strong growth opportunities, focusing on fashion innovation, enhancing customer experience, and sustainability.

The company plans significant investments in logistics and technology, aiming for a 5% annual gross space growth from 2024 to 2026.

Online sales are expected to continue strong growth alongside store optimization.

Inditex’s Annual General Meeting in July 2024 will propose new board members and changes in corporate governance to align with best practices.

As Inditex looks to the future, its commitment to innovation and excellence will likely drive further success and solidify its position as a leader in the global fashion industry.

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