Owner of Zara, Inditex, announced a 7.1 per cent increase in sales in the first quarter of 2024, reaching € 8.2 billion; in constant currency, sales increased by 10.6 per cent.
The quarter’s gross profit climbed by 7.3 per cent to € 4.9 billion, while the gross margin increased by 13 basis points to 60.6 per cent. Both EBITDA and EBIT climbed by 8 per cent and 10.3 per cent, respectively, to € 2.4 and € 1.6 billion.
While net income jumped 10.8 per cent to € 1.3 billion, the company’s PBT increased 11.1 per cent to € 1.7 billion.
In a press release, the firm stated that retail and online sales in constant currency between 1st May and 3rd June 2024, climbed by 12 per cent compared to the same time in 2023, and that spring/summer collections are still well-liked by customers.
The company opened storefronts in 28 markets in the first quarter. Inditex opened its first retail locations in Uzbekistan on 29th February at Tashkent City Mall. On 3rd April, the company reopened 19 locations across seven brands and started doing business online in Ukraine. By the end of the time frame, the business ran 5,698 locations.
Inditex anticipates a substantial growth in online sales combined with a favourable space contribution to sales in 2024–2026. The company forecasts a negative 2 per cent currency effect on sales in FY 2024 with a stable gross margin based on current exchange rates.
