Óscar García Maceiras, the CEO of global fashion retailer Inditex, has shown his confidence in the company by making a substantial investment in its shares. Maceiras purchased 2,667 shares worth 103,479.6 euros, in addition to his previous investment of 26,361 shares in April. This move comes shortly after Inditex announced its financial results.

The stock market performance of Inditex has been impressive, with the company’s share price experiencing a slight decrease of 0.52% to settle at 38.4 euros at the close of trading on Friday. However, when the financial results were announced, the share price reached its peak at 39 euros, with a market capitalization of 121 billion euros. The overall market capitalization of the company closed at 119.7 billion euros.

Despite the minor decline in share price, Inditex has had an exceptional year in the stock market. It currently stands as the second best-performing stock in the Ibex, with a 54.57% appreciation. It is only behind Laboratorios Rovi, which has experienced a 57.38% increase.

The financial results for the first nine months of Inditex’s 2023-2024 fiscal year have also been impressive. The company achieved a net profit of 4.102 billion euros, representing a 32.5% increase compared to the previous year. The sales of the group amounted to 25.609 billion euros, showing an 11.1% rise. Inditex attributes this success to its strong performance in both physical and online stores, across all regions and retail formats.

However, the third quarter has seen a slight slowdown in sales growth, with a 6.7% increase compared to the previous year. This marks the end of 10 consecutive quarters of double-digit growth for the company. The slowdown can be attributed to several factors, including unseasonably warm weather at the beginning of autumn.

Despite this, the gross margin has increased by 12.3% to 15.203 billion euros, accounting for 59.4% of sales. Inditex predicts a -4% currency impact on sales in 2023 based on current exchange rates. The company expects the gross margin for 2023 to be approximately 75 basis points higher than in 2022.

Furthermore, Inditex’s net cash position has seen a significant increase of 15%, reaching 11.480 billion euros compared to the previous year.

Maceiras’s investment in Inditex shares showcases his confidence in the company’s future success and growth in the fashion industry. As the CEO, he plays an essential role in driving Inditex’s strategy and ensuring its position as a leading player in the global market.

Overall, Inditex’s strong financial results, despite the slight sales growth slowdown, combined with Maceiras’s investment, demonstrate the company’s resilience and potential for continued success.

Useful links:
Inditex Official Website
Inditex on Reuters