The Spanish clothing group Industria de Diseño Textil SA (Inditex) was able to significantly increase its sales and profits in the first six months of the 2023/24 financial year. The parent company of brands such as Zara, Massimo Dutti, Stradivarius, Pull & Bear and Bershka has remained on a growth path so far in the second half of the year. This emerges from an interim report that the group of companies published on Wednesday.
In the period from February to July, group sales amounted to 16.9 billion euros, which represented an increase of 13.5 percent compared to the first half of the previous year. Adjusted for exchange rate changes, revenue grew by 16.6 percent.
The largest contribution came from the Zara retail chain, whose half-year sales including the Zara Home concept were 12.4 billion euros, 13.1 percent above the corresponding previous year’s level. The other Group brands also achieved double-digit growth. Overall, developments in all market regions were “positive,” the group explained.
Revenues also grew strongly in the first weeks of the second half of the year
Thanks to a higher gross margin and efficient cost management, profit significantly exceeded the corresponding previous year’s level. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 15.7 percent to 4.7 billion euros. Net profit even jumped by 40.1 percent to 2.5 billion euros, exceeding market expectations.
According to the group, the start to the second half of the year was also successful. The current autumn-winter collections were “very well received” by customers, explained the clothing provider. In the period from August 1st to September 11th, currency-adjusted revenues would therefore have been 14 percent above the corresponding previous year’s level.