Inditex, the owner of Zara, reported significant growth in both revenue and profits for early 2024, attributed to robust spring/summer sales.
- The company’s revenue increased by 7.1% year-on-year, with gross profits rising 7.3% to €4.9 billion.
- EBITDA saw an 8% growth, reaching €2.4 billion, reflecting strong financial performance.
- Customer reception of the spring/summer collections was notably positive, enhancing sales figures.
- Inditex plans to invest €1.8 billion in logistics improvements and introduce new technology across its stores.
Inditex, the parent company of Zara and other major brands, reported a financial upswing for the period from 1 February to 30 April 2024. The group’s revenue climbed by 7.1% compared to the same period last year, totalling €8.2 billion. This growth was driven by robust sales of their spring/summer collections, which have been well received by consumers.
Alongside the increase in revenue, Inditex’s gross profit surged by 7.3%, reaching €4.9 billion. The earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw a notable rise of 8%, amounting to €2.4 billion. These figures underscore the company’s strong financial performance during the quarter.
The group’s diverse brand portfolio, which includes Zara, Pull & Bear, Massimo Dutti, Oysho, Bershka, and Stradivarius, contributed significantly to these positive results. The company capitalised on the positive consumer reception of its seasonal collections.
In terms of market expansion, Inditex successfully opened new stores in 28 markets during the first quarter of 2024. By the end of this period, the company operated a total of 5,968 stores worldwide, with Zara holding the largest share at 1,806 stores.
Looking ahead, Inditex has announced plans to invest €1.8 billion over the next two years in new distribution centres. This initiative aims to enhance its logistics capabilities and support continued growth. Furthermore, the company is set to implement new security technology in its stores, expected to be fully operational in Zara outlets by 2024.
Inditex’s strong financial performance in early 2024 highlights its effective strategy and market position.
