Inditex's net income increased by 8.5 percent year-on-year to reach 4.4 billion euros. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 7.2 percent to €8 billion. EBIT increased by 9.3 percent to €5.7 billion. Profit before tax (PBT) increased 9.9 percent to €5.8 billion, and net income increased 8.5 percent to €4.4 billion (~$4.625 million). The company continued with very strong operating performance due to the creativity of the teams and the solid execution of the fully integrated in-store and online business model, Inditex said in a press release.
Inditex reported sales of 27.4 billion euros (~$29.044 million), an increase of 7.1 percent year-on-year for the nine months of 2024. Gross profit increased 7.2 percent to 16.3 billion euros (~$17.11 billion), with a gross margin of 59.4 percent. Net revenue grew 8.5 percent to €4.4 billion (~$4.625 billion). By 2024, it expects a stable gross margin and a 3 percent currency impact on sales.
The Spanish brand opened stores in 45 markets during 9M 2024. At the end of the period, the company operated 5,659 stores. Sales in constant currency grew by 10.5 percent, showing a very satisfactory evolution both in stores and online.
The company's operating expenses increased 7.0 percent, below sales growth, generated strong cash flow and was reinvested in the business. The company's net cash position grew by 3.0 percent to €11.8 billion.
Due to strong operating performance through the nine months of 2024, inventory was 2.6 percent lower as of Oct. 31, 2024, compared to the same date in 2023, according to the news release.
Perspective
For the full year 2024, Inditex expects a stable gross margin of +/-50 bp. At the current exchange rate, the company reiterates its expectation of a -3.0 percent currency impact on sales in 2024. It also estimates ordinary capital expenditure of around €1.8 billion.
Fiber2Fashion News Desk (SG)
