Almost 15 million a day. This is what Zara's parent company has earned during each of the days in 2023. The Inditex group has once again smashed profits and sales in another record year, which has led it to shoot up the dividend by 28%, at a rate of 1 .54 euros per share. Amancio Ortega, founder of the company and main shareholder, will receive 2,845 million for this concept.
Sales increased by 10.4% year-on-year, to 35,947 million euros, while profit stood at 5,381 million, 30% more than the previous year, according to what the company reported to the CNMV. The group has also reached highs on the stock market this year, with a capitalization of almost 128 billion euros.
This is a historic year for Inditex. “Inditex's performance in 2023 has been excellent. Our teams have been able to take advantage of opportunities to continue growing profitably. “We are investing to drive future growth and continue offering attractive remuneration to shareholders,” commented CEO Óscar García Maceiras.
For this year, the company plans to invest 1.8 billion euros to improve its stores and advance in technological integration and the online platform. In addition, it will invest 900 million in 2024 and 2025 in its logistics plan, which includes a new distribution center in Zaragoza.
The increase in market share, the improvement of the gross margin and the strategy to increase the company's positioning contribute to the increase in sales and profits, with a mix of higher value products that has increased the average price of its items. In recent years, the group chaired by Marta Ortega has opted to launch better quality capsule collections and collaborations with renowned designers.
The company also continues with its strategy of reducing the total number of stores, in order to focus on larger establishments and premium locations. Thus, its total sales area has increased by 2%, despite having reduced the total number of stores (5,692 stores as of January 31 of this year compared to 5,815 a year before). Inditex opened stores in 41 markets in 2023, a year in which Zara opened its first store in Cambodia. Altogether, the group carried out 192 openings, 231 renovations including 84 expansions, and 315 absorptions.
It recently announced its intention to gradually reopen its 20 stores in Ukraine starting in April, a market in which it had suspended its activity following the Russian invasion. He also abandoned the business in Russia, which he sold to the Daher group, while temporarily closing his stores in Israel due to the armed conflict in Gaza.
By channel, online grew by 16%, so that it already contributes 25% of total turnover (9,064) million. The group had set the goal of reaching 30% of sales in ecommerce by 2024. If you look at the brands, Zara remains the flagship, with 72.4% of global revenues, although all formats they improve.
Regarding the evolution of the current year, it explains that in-store and online sales at constant exchange rates increased by 11% between February 1 and March 11, 2024 compared to the same period in 2023.
