Inditex has decelerated sales in the third quarter of its fiscal year (from August to October), with revenues of 8.758 billion euros in this period, which provides year-on-year growth of 6.7%, for below analysts' forecasts. The group that owns Zara or Massimo Dutti breaks a streak of ten quarters with double-digit increases, and follows the trend of other firms, which have seen a lower pace of sales in the fall due to high temperatures.
Despite this, 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, the Commission notified yesterday National of the Stock Market (CNMV). The figure almost equals the earnings of the entire previous year, when Inditex's profit reached 4,130 million euros. Total sales up to October amounted to 25,609 million euros, 11.1% more.
Despite the slowdown in the third quarter, the group indicates that sales in the fourth quarter are advancing at a greater pace, with growth of 14% between November 1 and December 11. In addition, the winter collections were well received by consumers, he points out.
"The execution of the business model has been very outstanding. Additionally, the fall-winter 2023 campaign has experienced a normalization of supply chain conditions and a more favorable euro-dollar exchange rate compared to the same 2022 campaign," explained the company. Net cash has increased by 15% over a year earlier, reaching 11.48 billion euros.
In this context, Inditex has emphasized that it continues to see great opportunities for future growth. The group is present with some of its brands, especially Zara, in 213 markets, and in a large part it has a low market share, which is why they see great possibilities for expansion. "Our priorities are to continuously 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,” they added.
This financial year, the company founded by Amancio Ortega is making investments to increase operational capacity, obtain efficiencies and increase differentiation at a time of maximum competition in the sector due to the rise of Shein and the intention to go public.
The company estimates ordinary investments of close to 1.6 billion euros in 2023. The Inditex share closed yesterday's session with a slight fall of 0.23%, to mark a price of 38, 21 euros, on a day in which it reached new historical highs, with a capitalization of 121,000 million euros. The company has experienced a revaluation of more than 53% since the beginning of the year.
