Inditex, owner of brands such as Zara, Bershka, Oysho or Massimo Dutti, has once again smashed its sales and profit record in one quarter despite the economic situation. The group chaired by Marta Ortega registered sales from August to October of 8,210 million euros and earned 1,301 million, reported this Wednesday to the CNMV. Billing thus increased by 11% compared to the third quarter of last year, a growth rate lower than that registered in previous quarters.
However, the results of Inditex this third quarter are better than expected by analysts. The accumulated data for the first nine months also points to a record year, thus separating itself from its immediate competitors in the textile industry, which have indeed suffered a slowdown.
During the first nine months of the year, group sales amounted to 23,055 million euros, 19% more than in the same period in 2021, and profit reached 3,095 million euros, 24% more.
"In a very demanding environment, these results show the strength of our unique model: collections with a high fashion component, an attractive shopping experience and a highly committed human team", commented Óscar García Maceiras, CEO of Inditex, in a a statement.
The company underlines the control of expenses carried out in the midst of an international context of strong generalized cost increases. In this sense, it is worth noting that its operating costs have increased by 17% in the year, two points below its sales.
The forecasts for the end of the year are also positive, clearing up uncertainties about the progress of consumption in the key period of Christmas. The group advances that its sales have grown by 12% at a constant exchange rate between November 1 and December 8, thus anticipating a good fourth quarter. This is the most important sales period for the company.
In the first nine months of its fiscal year, Inditex opened in 30 markets and at the end of the period it had 6,307 stores, 350 less than a year ago, thus continuing its commitment to fewer establishments but with a larger format. On the other hand, the group has temporarily anticipated inventory entries in 2022 to increase product availability in the face of possible tensions in the supply chain. Inventory as of October 31, 2022 grew by 27%. The fall-winter inventory is considered to be of high quality and as of December 8 of this year, inventory levels show an annual growth of 15%.
"The flexibility and responsiveness of the business, coupled with seasonal, proximity sourcing, allows for rapid reaction to fashion trends and a unique position in the market. Our fully integrated business model has great growth potential" , has underlined the signature.
