Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Zara-owner Inditex upbeat on strong results

(Sharecast News) - Shares in Inditex sparked on Wednesday, after the Spanish fashion giant said 2024 had got off to a strong start. The owner of Zara, Pull&Bear and Bershka, among others, said its spring/summer 2024 collections had been well received by customers, with total sales in the six weeks to 11 March up 11% year-on-year between 1 February and 11 March.

The world's biggest retailer also announced plans to spend €900m a year expanding logistics capabilities in 2024 and 2025, "in view of the strong future growth opportunities".

Inditex said it had a "strong commitment to profitable growth" and expected annual gross space to grow by around 5% between 2024 and 2026.

Inditex currently has just under 5,700 stores in around 90 countries.

As at 1000 GMT, the stock had put on 5%.

The update came as Inditex posted fourth-quarter sales of €10.4bn, up 8.6% year-on-year and an improvement on the 6.6% growth seen in the previous three months. Net profits rose nearly 24% to €1.3bn, marginally ahead of expectations.

In the year to 31 January, net sales were €35.9bn, up 10% or by 14% in constant currencies. The retailer said it had seen sales growth across all geographies and concepts during the year.

Annual earnings before interest, tax, depreciation and amortisation jumped 14% to €9.9bn, while net income surged 30% to €5.4bn.

Oscar Garcia Maceiras, chief executive, said: "Inditex's performance in 2023 has been excellent. Our teams have been able to take advantage of the opportunities to keep growing profitability.

"We are investing to drive future growth and continue to offer an attractive remuneration to shareholders."

Jefferies noted: "The fourth-quarter results and current trading confirm just how much stronger than the rest of its peer group Inditex has become."

Inditex is majority-owned by the family of Amancio Ortego, its billionaire founder.

Share this article

Related Sharecast Articles

Kefi shares pop on official launch of Tulu Kapi
(Sharecast News) - Kefi Gold and Copper officially launched the Tulu Kapi Gold Mines (TKGM) project in Ethiopia on Monday.
Sajid Javid reportedly in talks to join Shein ahead of London IPO
(Sharecast News) - Singapore-based fast fashion retailer Shein has reportedly approached the former chancellor Sajid Javid about joining the company ahead of its rumoured listing on the London Stock Exchange.
Bradda Head reaches settlement over fraudulent payment
(Sharecast News) - North America-focussed lithium developer Bradda Head announced on Monday that it has reached a settlement agreement over the fraudulent payment initially reported on 29 March 2022.
SDI Group set to end year in line with forecasts
(Sharecast News) - Scientific digital imaging, sensing and control technology company SDI Group said in a trading update on Monday that, pending its final accounts and audit, it expected to report revenue of £65.9m for the year, in line with current market expectations, but slightly down from £67.6m in 2023.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.