The Spanish clothing supplier Industria de Diseño Textil SA (Inditex) achieved solid growth in sales and earnings in the first nine months of the 2024/25 financial year.
However, the current results presented by the parent company of brands such as Zara, Massimo Dutti, Stradivarius, Pull & Bear and Bershka on Wednesday fell well short of market expectations. Immediately after publication, the share price slipped by more than five percent.
Group sales increase by around seven percent
In the months from February to October, group sales reached 27.4 billion euros. This corresponded to an increase of 7.1 percent compared to the same period last year. Adjusted for exchange rate changes, revenue grew by 10.5 percent. Sales developed “very satisfactorily” both in the branches and in the online business, and revenues for all concepts were “positive,” explained Inditex.
Thanks to a slight improvement in the gross margin and disciplined cost management, earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 7.2 percent to 7.97 billion euros. The net profit attributable to shareholders amounted to 4.45 billion euros in the first nine months of the year, exceeding the corresponding previous year’s level by 8.5 percent.
Inditex is now hoping for the Christmas business
After the latest figures did not meet analysts’ expectations, Inditex is now relying on the important Christmas business. In the period from November 1st to December 9th, currency-adjusted revenues increased by nine percent compared to the same period last year, the group said.
Read more:
- Inditex brand Stradivarius is moving to the Alexa shopping center in Berlin
- Inditex plans to launch Bershka in India in November
- Inditex acquires a share in the sustainable farming company Galy
- Inditex appoints Lucian Dorobantu as head of Pull & Bear
- Zara parent Inditex remains on course for growth in the first quarter