Inditex, the owner of Zara, reports a 7.1% increase in sales for the first nine months of 2024.
- The company’s gross profit rose by 7.2%, with gross margins stable at 59.4%.
- Despite challenging conditions, there was positive growth across all of Inditex’s brands.
- Operating expenses rose by 7%, below the rate of sales growth, supporting profit margins.
- Inditex anticipates continued strong growth, focusing on enhancing the fashion proposition and sustainability.
Inditex, the parent company of Zara, has announced a notable 7.1% increase in its sales for the initial nine months of 2024, reaching €27.4 billion (£23.4 billion). This growth has been primarily attributed to the strong demand for the company’s autumn winter collections, which have been well received across all brand portfolios.
Further illustrating its successful performance, the Spanish fashion conglomerate reported an increase in gross profit by 7.2% to €16.3 billion (£14.0 billion), while maintaining a stable gross margin of 59.4%. This indicates a robust performance in comparison to other retailers who are facing difficulties such as adverse weather and rising operational costs.
Despite these external challenges, Inditex has managed to sustain positive sales momentum across its diverse brand range, including Zara, Massimo Dutti, Pull & Bear, Bershka, and Stradivarius. The strategic management of operating expenses, which rose by only 7%, has contributed to the maintenance of healthy profit margins.
The company’s EBITDA saw a 7.2% increase, while net profits during this period also rose significantly by 8.5%, reaching €4.4 billion (£3.8 billion). Online sales have played a crucial role in boosting overall sales, marking a significant 10.5% increase in total sales for the period.
Looking ahead, Inditex emphasised its commitment to robust growth opportunities by enhancing their fashion offerings, focusing on sustainability, and investing in customer experience improvements. The company aims to drive long-term advancement by prioritising these key areas and developing initiatives that elevate their business model.
Inditex’s strategic focus and effective management practices position it well for continued growth in the fashion industry.
