The Spanish clothing group Industria de Diseño Textil SA (Inditex) was able to defy the adverse conditions in the 2022/23 financial year and set new records in terms of sales and earnings. Looking at the figures published on Wednesday, CEO Oscar García Maceiras sees the company on course: “The excellent results for 2022 show the strength of our business model,” he emphasized in a statement.
The parent company of brands such as Zara, Massimo Dutti, Pull & Bear and Bershka achieved sales of 32.6 billion euros in the fiscal year ended January. Despite the suspension of business in Russia and Ukraine last spring, sales rose by 17.5 percent compared to the previous year. The engine of growth was the clothing chain Zara, whose sales increased by 21 percent to 23.8 billion euros.
Net profit increases by around 27 percent
Thanks to strict cost controls and measures to increase efficiency, earnings grew even faster than sales. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 20.4 percent to 8.65 billion euros, net profit attributable to shareholders was 4.13 billion euros, up 27.4 percent on the level of 2021/ 22
The Group also started the current financial year with strong sales growth. In the period from February 1 to March 13, currency-adjusted sales exceeded the corresponding prior-year level by 13.5 percent, Inditex announced. Adjusted for the contributions posted last year from activities in Russia and Ukraine that have since been discontinued, the rate of increase was even 17.5 percent.