Inditex boosts the stock market with results that exceed expectations
The textile company earned 4.622 billion, 3.9% more, in the first nine months of its fiscal year
BarcelonaInditex, the group with brands such as Zara, Massimo Dutti, Bershka, and Stradivarius, was one of the stars of Wednesday's trading session, with results exceeding expectations and helping to propel the Ibex 35 to a record high of 16,585.70 points. The textile group, whose shares rose 8.86% to €53.42, closed the first nine months of its fiscal year (February to October) with a net profit of €4.622 billion, a 3.9% increase compared to the same period last year. At the close of trading, Inditex's market capitalization, which remains the top performer on the Ibex, stood at €165.36956 billion. The company's sales increased by 2.7% to €28.171 billion, driven by "satisfactory performance" in both its physical stores and online. In this regard, the group highlighted the 4.9% increase in revenue for the third quarter (August to October), reaching €9.814 billion. As for the gross operating profit (EBITDA) for the first nine months, it rose 4.2% year-on-year to €8.303 billion.
The company's CEO, Óscar García Maceiras, stated that the group continues to see new long-term growth opportunities in different markets and across all its formats after making consistent investments in stores and logistics. García Maceiras attributed the growth in results to the successful execution of the business model over the years, coupled with the performance of the teams across all areas and the commitment to offering customers quality fashion.
The group's CFO, Andrés Sánchez, echoed this sentiment, stating that "there is no structural change." "This is a pure result of good execution and a good example of the flexibility of the business model," he noted.
The group, which estimates ordinary investment of around €1.8 billion, explained that the logistics expansion plan for 2024 and 2025 remains on schedule. This extraordinary two-year investment program focused on business expansion allocates €900 million to increase logistics capacity in each of the 2024 and 2025 fiscal years.
Meanwhile, former Italian Prime Minister Enrico Letta has joined Inditex to chair its international advisory board. He will advise the company's board of directors on geopolitics, international economics, and global affairs. The board is completed by Taeho Bark, Simon Fraser, Rafael Gil-Tienda, Anne Lange, Enrique Lores, and Marcos Troyjo, the company announced.