Inditex, the Spanish fashion giant, has announced impressive sales and earnings growth for the first nine months of fiscal 2024. The company credits its success to strong execution of its business strategy.
Earnings before interest and taxes (EBIT) reached €5.19 billion ($5.60 billion) during this period, up from €4.18 billion in the same timeframe last year. The third-quarter EBIT came in at €2.03 billion, surpassing analysts’ expectations of €1.97 billion. Net income for the nine months rose to €4.1 billion from €3.1 billion last year.
Notably, the company reported a 14.9% increase in sales at constant currency, amounting to €25.61 billion for the nine months. This indicates third-quarter sales of approximately €8.76 billion, slightly lower than analysts’ anticipated figure of €8.88 billion.
Looking ahead, Inditex now expects a gross margin around 75 basis points higher than last year for the full fiscal year. Previously, the company forecasted a stable gross margin with a margin of plus or minus 50 basis points compared to the previous year’s figure of 57%. Additionally, Inditex anticipates a negative 4% currency impact on sales at current exchange rates, while it had previously estimated a 3.5% negative impact.
Inditex’s main competitor, H&M Hennes & Mauritz based in Stockholm, is due to report its fourth-quarter sales on Friday.
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