Spanish firm Inditex's sales surge 10.4% in FY23

13 Mar '24

2 min read

Pic: Kevin Hellon - stock.adobe.com

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Inditex reported a 10.4 per cent sales rise in FY23, reaching €35.9 billion ($39.27 billion).
Store sales rose 7.9 per cent, with expansion in 41 markets and 5,692 stores.
Online sales grew 16 per cent, totalling €9.1 billion.
Gross profit climbed 11.9 per cent to €20.8 billion, EBITDA was up 13.9 per cent to €9.9 billion, and net income surged 30.3 per cent.

Inditex, the Spanish multinational clothing company known for its popular brand Zara, has experienced significant growth in fiscal 2023 (FY23), reporting a 10.4 per cent increase in sales to reach €35.9 billion (approximately $39.27 billion). The growth was partly fuelled by a 7.9 per cent increase in store sales, reflecting higher footfall and improved store productivity.

Over the year, Inditex expanded its physical presence by opening stores in 41 markets, including Zara's first store in Cambodia. The company engaged in extensive store optimisation, with 192 openings, 231 refurbishments, 84 enlargements, and 315 absorptions, concluding FY23 with 5,692 stores globally, Inditex said in a press release.

The group also saw a 16 per cent increase in online sales, totalling €9.1 billion. Gross profit for FY23 rose by 11.9 per cent to €20.8 billion, with the gross margin improving to 57.8 per cent, a 77-basis-point increase. Inditex's EBITDA saw a 13.9 per cent rise to €9.9 billion, while EBIT surged by 23.4 per cent to €6.8 billion. Pre-tax profits grew by 28.2 per cent to €6.9 billion, with net income jumping 30.3 per cent from the previous year to €5.4 billion.

The company's strong operational performance, coupled with normalisation in supply chain conditions, resulted in a 7 per cent reduction in inventory as of January 31, 2024, compared to the same date in 2023.

Fibre2Fashion News Desk (DP)

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