Inditex gains 5% on strong H1 results 📈

Shares of Spanish company Inditex (ITX.ES), responsible for brands such as Zara, Bershka, Massimo Dutti and Pull&Bear, among others, are gaining more than 5.5% today following the release of strong results for the first part of the year.

What pleases investors in particular is the company's strong performance in both a tough period in seasonal terms and an uncertain global economic situation. The company's results indicate that, despite circular pressures, the company's core brand collections have found their audience. Inditex intends to spend €2.7 billion this year to implement new technologies across the company and expand its logistics capacity, which will include increased throughput for Zara, Bershka and footwear brands.

Still, Inditex warned that currency changes, mainly a weaker dollar, will reduce revenues by 3% in 2024, more than originally forecast.

FIRST-QUARTER RESULTS

• Ebit €3.54 billion, +12% y/y, estimated €3.48 billion
• Ebit margin 19.6% vs. 18.8% y/y, estimated 19.4%
• Net sales €18.07 billion, +7.2% y/y, estimated €18.02 billion
• Zara & Zara Home sales €13.03 billion, +5.4% y/y
• Pull&Bear sales €1.12 billion, +7.9% y/y
• Massimo Dutti sales €904 million, +7.4% y/y
• Bershka sales €1.38 billion, +17% y/y
• Stradivarius sales €1.26 billion, +17% y/y
• Oysho sales 368 million euros, +6.4% y/y
• Gross profit €10.54 billion, +7.6% y/y, estimated €10.51 billion
• Gross margin 58.3% vs. 58.2% y/y, estimated 58.4%
• Ebitda €5.04 billion, +8.1% y/y, estimated €5.02 billion
• Ebitda margin 27.9% vs. 27.7% y/y, estimated 27.9%
• Net profit €2.77 billion, +10% y/y, estimated €2.78 billion
• EPS €0.889 vs. €0.807 y/y, estimated €0.89

Inditex is up more than 5% today, holding on to a dynamic upward trend that has been maintained since 2022.  Source: xStation