Inditex registered a Net profit of 4,102 million euros in the first nine months of its fiscal year 2023 (from February 1, 2023 to October 31, 2023), representing an increase of 32.5% compared to the same period last year, the company reported this Wednesday.
The The turnover of the Galician group amounted to 25,609 million euros, 11.1% morewith a Development”very satisfying» Both in store and online, positive in all geographic areas and in all formats. In the third quarter they stood at 8,758 million euros, 6.7% more than a year ago, after a series of ten consecutive quarters of double-digit increases. Sales at constant exchange rates increased by 14.9% after the Autumn/Winter campaign collections were well received by customers.
On your side, The gross margin increased by 12.3% to 15,203 million eurosand was 59.4% of sales (+67 basis points compared to the previous year). In addition, Inditex has highlighted that all spending lines have developed positively. Operating costs rose by 10.6% and were therefore below sales growth.
Also the Operating profit (EBITDA) increased by 13.9%, to 7,429 million euros, while net operating profit (EBIT) increased by 24.3% to 5,192 million euros and profit before taxes increased by 29.8% to 5,238 million euros. Net liquidity increased by 15% compared to the previous year and reached 11,480 million euros. In the first nine months of fiscal 2022, Inditex allocated 231 million euros in the “Other results” line for estimated expenses for fiscal 2022 in the Russian Federation and Ukraine.
«In the first nine months of its financial year, Inditex continued its strong operational performance, supported by the creativity of its teams and the good execution of the integrated store and online business model.“said the company, pointing out that there were such during this period Openings in 36 markets. At the end of the reporting period, Inditex operated 5,722 stores.
Due to the strong operational performance in the first nine months of fiscal 2023 and the normalization of supply chain conditions Inventory decreased by 5% as of October 31, 2023 compared to the same date last year.
Forecasts
Looking ahead to the start of the fourth quarter of the 2023 financial year, Inditex has highlighted that the collections of the autumn-winter campaign “very well received» from their customers. So, In-store and online sales at constant exchange rates increased 14% between November 1 and December 11, 2023 regarding the same period of 2022.
«Inditex continues to see great opportunities for future growth. Our priorities are to continually improve our fashion offering; optimize the customer experience; increase our focus on sustainability; and retain the talent and commitment of our employees. Prioritizing these areas will drive long-term growth. To take our business model to the next level and further expand our differentiation, we are developing a series of initiatives in all key areas for the coming years« assured the company chaired by Marta Ortega.
Inditex has Presence in 213 marketseach with a small share and in a highly fragmented sector, as you can see «strong growth opportunities«. «We continue to expect a growing increase in sales productivity in our branches. Gross area growth in 2023 will be around 3% and the task of branch optimization continues“, the company has indicated that it hopes so The area contribution to sales will be positive in 2023.
Furthermore, Inditex continues to experiment A Very positive development in online sales and expects them to increasingly participate in the group’s overall sales. At current exchange rates, the company expects a currency impact of -4% on sales in 2023. Based on current information, Inditex expects gross margin in fiscal 2023 to be approximately 75 basis points higher than in 2022.
In the current financial year, the Group is making investments to increase operational capacity, achieve efficiencies and raise differentiation to a higher level, which it expects Ordinary investments of around 1.6 billion euros in 2023.