(AOF) – On the Madrid Stock Exchange, the Spanish ready-to-wear giant Inditex (acronym for Industria de Diseño Textil) rose 0.94% to 38.66 euros. At the end of 9 months of activity, the owner of the Zara brand generated a net profit of 4.1 billion euros, up 32.5%, almost equal to its 2022-2023 level (4. 13 billion euros). Gross operating surplus increased by 13.9%, to 7.4 billion euros, and operating profit by 24.3%, to 5.2 billion.
Its revenues total 25.62 billion euros, a bit below the 25.7 billion anticipated, but up 11.1% over one year based on published data compared to an increase of 19% recorded a year earlier.
Its gross margin, a key indicator in the textile sector, improved from 58.2% to 61.7% between the first half and the third quarter.
As for Inditex’s net cash, it stands at 11.5 billion euros, up 15% over one year.
“Inditex has raised its gross margin forecasts for the 2023 financial year to around +75 basis points compared to the previous year (compared to a stability objective (plus or minus 50 basis points) targeted until then)”, underlines UBS, adding that the group “is building sustainable outperformance compared to its peers.
If sales in the third quarter (August-October) stalled due to unusually mild weather during the fall, sales for the first weeks of the last quarter, from November 1 to December 11, recorded growth of 14 % at constant currencies, above forecasts.
“The fall-winter collections continue to be well received by our customers,” underlines Inditex.
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