The Spanish textile group Industria de Diseño Textil SA (Inditex) remains on course for success. In the first nine months of the current 2022/23 financial year, the parent company of brands such as Zara, Massimo Dutti, Pull & Bear and Bershka was able to achieve strong growth in sales and earnings.
CEO Oscar Garcia Maceiras was correspondingly satisfied: “In the currently difficult environment, the current results clearly demonstrate the strength of our unique business model,” he explained in an interim report published on Wednesday.
Group sales increase by 19 percent
In the months of February to October, Inditex generated group sales of EUR 23.1 billion, exceeding the corresponding prior-year level by 19 percent. Adjusted for exchange rate changes, revenues increased by 20 percent.
The company explained that sales have been developing positively in all market regions since the beginning of the year. The revenues in the branches have increased due to higher footfall, online sales have “continued to be satisfactory” and are above the record level of the same period of the previous year.
Inditex remains on course for growth in the fourth quarter
Thanks to the “strict control of operating costs”, the result grew even slightly faster than sales. Earnings before interest, taxes, depreciation and amortization (EBITDA) reached 6.5 billion euros in the first nine months, which corresponds to an increase of 20 percent compared to the same period last year. Reported net profit increased by 24 percent and amounted to 3.1 billion euros.
The group was also able to achieve strong growth in the first few weeks of the final quarter: In the period from November 1 to December 8, currency-adjusted retail sales were 12 percent above the corresponding figure for the previous year, Inditex announced.