Inditex has slowed down sales in the third quarter of its fiscal year (from August to October), with revenues of 8,758 million euros in that period, which gives a year-on-year growth of 6.7%, below the forecast of the analysts. The group that owns Zara or Massimo Dutti thus breaks a streak of ten quarters with double-digit increases, and follows the trend of other fashion brands that have seen a slower pace of sales in autumn due to high temperatures.
Even so, the company continues to earn more than ever, with a profit in the first nine months of its fiscal year of 4,102 million euros, 32.5% above the same period a year ago, it notified this Wednesday to the CNMV. The figure almost equals the profits of the entire previous year, when Inditex's profit reached 4,130 million euros. Total sales until October amounted to 25,609 million euros, 11.1% more.
Despite the slowdown in the third quarter, the group nevertheless anticipates that fourth quarter sales are advancing at a greater pace, with a growth of 14% between November 1 and December 11. The winter collections were also well received by consumers, he points out.
"The execution of the business model has been very outstanding. Additionally, the autumn-winter 2023 campaign has experienced a normalization of the conditions of the supply chain and a more favorable euro-dollar exchange rate compared to the same campaign in 2022," the company has explained. Net cash has increased by 15% compared to a year before, reaching 11,480 million euros.
In this context, Inditex has stressed that it continues to see great opportunities for future growth. "Our priorities are to continually improve our fashion proposition; optimize the customer experience; increase our focus on sustainability; and preserve the talent and commitment of our people. Prioritizing these areas will drive long-term growth," he said. indicated.
In the current financial year, investments are being made to increase operational capacity, obtain efficiencies and increase differentiation to a higher level. The company estimates ordinary investments of around 1.6 billion euros in 2023.
Inditex's stock rose a slight 0.40% in the first hour. The company has experienced a revaluation of 58% so far this year and its capitalization exceeds 119 billion euros, leading the Ibex 35.
