Spanish retailer Inditex's sales soar 7.2% in H1 FY24

11 Sep '24

2 min read

Spanish retailer Inditex's sales soar 7.2% in H1 FY24

Pic: Imaxepress - stock.adobe.com

Insights

Spain's Inditex reported a 7.2 per cent sales growth in H1 FY24, reaching €18.1 billion (~$19.98 billion).
The company's gross profit rose 7.5 per cent to €10.5 billion, with a 58.3 per cent gross margin.
EBITDA grew 8.1 per cent to €5.0 billion, while EBIT increased 11.9 per cent to €3.5 billion.
Net income climbed 10.1 per cent to €2.8 billion.

Inditex, the Spanish multinational clothing company known for its popular brand Zara, has reported solid financial results for the first half of fiscal 2024 (H1 FY24), with sales growing by 7.2 per cent to reach €18.1 billion (approximately $19.98 billion). This growth reflects strong performance across both physical stores and online channels, with all concepts showing positive results. In constant currency terms, sales increased by 10.2 per cent.

The company’s gross profit saw a 7.5 per cent rise, totalling €10.5 billion, with the gross margin improving to 58.3 per cent, up 19 basis points compared to the first half of 2023. Operating expenses also exhibited a favourable trend, increasing by 6.8 per cent, which was below the rate of sales growth.

Inditex's earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 8.1 per cent to €5.0 billion. Operating profit (EBIT) grew by 11.9 per cent to €3.5 billion, while profit before tax (PBT) increased by 10.6 per cent, reaching €3.6 billion. The company’s net income for H1 FY24 reached €2.8 billion, marking a 10.1 per cent increase year-over-year, the company said in a press release.

“The design and quality of our fashion proposition and the experience we deliver our customers are, together with the efficiency and increasing sustainability of our operations, the keys to the solidity of these results. Our fully integrated model continues to generate opportunities for profitable growth across all concepts, regions and channels," said Óscar Garcia Maceiras, CEO.

Fibre2Fashion News Desk (DP)

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