Zara owner Inditex posts sales and profit growth

Image: Zara x Narciso Rodriguez In the first half of 2022, Inditex sales reached 14.8 billion euros, up 24.5 percent versus the same period of 2021. Sales in constant currencies grew 25 percent. The company said in a statement that sales were positive in all key geographical areas. Commenting on the company’s performance, Oscar García Maceiras, Inditex CEO said: “The results are explained by four factors, key to our performance. Our unique fashion proposition, an increasingly optimised shopping experience for our customers, our focus on sustainability, and the talent and commitment of our people.” Highlights of Inditex’s H1 results Gross profit for the period increased 24.5 percent to 8.6 billion euros and gross margin reached 57.9 percent, highest in seven years. EBITDA increased 30 percent to 4 billion euros, while EBIT increased 44 percent to 2.4 billion euros and PBT 42 percent to 2.3 billion euros. Net income increased 41 percent to 1.8 billion euros. At the end of the period, Inditex operated 6,370 stores. Inditex continues to witnesses positive sales growth The company’s store and online sales in constant currency between August 1 and September 11, 2022 increased 11 percent versus the same period in 2021. At current exchange rates Inditex expects a 0.5 percent currency impact on sales in FY2022. Online sales are expected to exceed 30 percent of total sales by 2024. In 2022, Inditex expects a stable gross margin. The company added that FY2021 final dividend of 0.465 euros per share will be paid on November 2, 2022.
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