Inditex, the retail giant known for its popular brands including Zara and Massimo Dutti, has announced strong results for the first half of the year and positive sales in early H2. Despite the difficulties caused by the war in Ukraine, the company achieved a remarkable 24.5% increase in sales, reaching €14.8 billion, with a 25% growth in constant currencies. This success can be attributed to the positive reception of its SS22 collections, as well as the strong performance of the AW22 collections, which saw an 11% increase in both store and online sales compared to the same period last year.

While other fashion retailers are experiencing a slowdown, Inditex remains ahead, although it has observed slower sales growth in recent weeks. To address potential supply chain challenges, the company has temporarily increased its production capacity.

During the first half of the year, Inditex witnessed a significant increase in both foot traffic and store sales, with store differentiation playing a crucial role in this achievement. Online sales also showed satisfactory progress, with positive results in the second quarter. Inditex has set a target for e-sales to account for more than 30% of its total sales by 2024.

The company’s gross profit surged by 24.5% to €8.6 billion, with a gross margin of 57.9%, the highest in seven years. Furthermore, operating expenses increased by 20%, which is below sales growth, indicating effective cost control measures. EBITDA increased by 30% to €4 billion, while both EBIT and pre-tax profit rose by 44% and 42% respectively. Net income experienced a substantial jump of 41% to €1.8 billion.

CEO Oscar García Maceiras attributes these impressive achievements to four key factors: the company’s unique fashion offerings, an optimized shopping experience for customers, a strong focus on sustainability, and the talent and dedication of its workforce. Inditex aims to continue expanding its business model, which has substantial growth potential.

During the first half of the year, Inditex opened new stores in 24 markets, bringing the total number of stores to an impressive 6,370. Zara and Zara Home led the way with a remarkable 29% increase in sales, followed by Pull&Bear (19%), Massimo Dutti (10%), Bershka (15%), and Stradivarius (17%). However, Oysho experienced a decline of 4% in sales.

In terms of geographical distribution, Inditex saw sales rise by 46.1% in Europe (excluding Spain), 20.1% in the Americas, 19.4% in Asia and the rest of the world, and 14.2% in Spain.

Overall, Inditex’s first-half results demonstrate its continued success in the fashion retail industry. Despite global challenges, the company’s strong performance, focus on customer satisfaction, and dedication to sustainability have positioned it for future growth.

Links:
Official Inditex Website
Zara Official Website