Spainish retailer Inditex's sales soar 13% YoY to €7.6 bn in Q1 FY23

07 Jun '23

2 min read

Pic: Tang Yan Song / Shutterstock.com

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Inditex, Zara's parent company, reported a 13 per cent YoY sales growth to €7.6 billion in Q1 FY23.
Gross profit rose by 14 per cent YoY to €4.6 billion, and EBITDA swelled by 14 per cent YoY to €2.2 billion.
The company's operating profit surged 43 per cent YoY to €1.5 billion in Q1 FY23, while net income jumped 54 per cent YoY to €1.2 billion.

Inditex, the Spanish multinational clothing company known for its popular brand Zara, has reported sales growth of 13 per cent year-on-year (YoY) to reach €7.6 billion in the first quarter (Q1) of fiscal 2023 (FY23), marking a favourable progression across both its in-store and online platforms. When adjusted for currency fluctuations, sales growth was 15 per cent.

Inditex's gross profit increased by 14 per cent YoY to reach a total of €4.6 billion in Q1 FY23. The company's gross margin, an indicator of the company's financial health, reached 60.5 per cent, which is 34 basis points higher than Q1 FY22, Inditex said in a press release.

Despite a 13 per cent YoY increase in operating expenses, this rise remained below the rate of sales growth. The earnings before interest, taxes, depreciation, and amortisation (EBITDA) swelled by 14 per cent YoY, amounting to €2.2 billion.

Operating profit, or EBIT, showed a noteworthy increase of 43 per cent YoY to hit €1.5 billion in Q1 FY23. Similarly, profit before tax (PBT) rose by 52 per cent YoY to €1.5 billion. Furthermore, Inditex's net income experienced a substantial boost of 54 per cent over Q1 FY22, rising to €1.2 billion from €760 million.

Following the robust operating performance in Q1 FY23 and the normalisation of supply chain conditions, Inditex reported that inventory was 5 per cent higher as of 30 April 2023.

Fibre2Fashion News Desk (DP)

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