Spanish fashion conglomerate Inditex has reported a 10.4 per cent increase in sales, with industry onlookers applauding its ability to incorporate trends and wide demographic appeal, helping the company sail through tough market conditions.
According to Inditex, the company’s fully integrated approach produced very good operating results in 2023, with sales, EBITDA, and net income all hitting “historic highs.”
In FY ’23, the company’s net sales increased by 10.4 per cent to € 35.95 billion (US $ 39.27 billion), or 14.1 per cent on a constant currency basis.
Considering the economic constraints that were tightening consumers’ finances in the latter half of the year, Pippa Stephens, retail analyst at GlobalData, claims that Inditex’s remarkable performance in FY ‘2023/24 was due to its excellent trend assimilation and wide demographic appeal.
Stephens said, “The group remains focused on its physical proposition, with continued store refurbishments and openings allowing its store sales to grow by 7.9 per cent. However, online regained its outperformance, increasing by 16 per cent, supported by its incorporation of new technologies like augmented reality and strong customer engagement through social media.”
Both in-store and online sales growth were deemed “satisfactory” by Inditex. As more people visited its websites, the amount of money made online climbed by 16 per cent to € 9.1 billion in 2023.
Geographically, retail and online sales increased by 48.7 per cent in Europe (except from Spain), 19.6 per cent in the Americas, 16.9 per cent in Asia and the Rest of the World, and 14.8 per cent in Spain.
In the same period last year, the company’s EBIT jumped by 23.4 per cent to € 6.80 billion, while its EBITDA increased by 13.9 per cent to € 9.9 billion in 2023.
Net income increased as well, going from € 4.15 million in FY ’22 to € 5.40 billion in FY ’23, a 30.3 per cent rise.
Additionally, Inditex noted that, as of 31st January 2024, their inventory was 7 per cent less than it was at the same time in 2023. It ascribed this to both a normalisation of supply chain conditions relative to 2022 and its “robust” operating performance.
Bharat Tex Special Report 2026 
