Spanish firm Inditex's sales soar 11.1% in 9M FY23

13 Dec '23

2 min read

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Inditex reported an 11.1 per cent sales increase to €25.6 billion in 9M FY23, boosted by store and online sales.
Gross profit rose 12.3 per cent to €15.2 billion, with a gross margin of 59.4 per cent.
Operating expenses grew 10.6 per cent, while EBITDA increased 13.9 per cent to €7.4 billion.
EBIT and PBT rose 24.3 per cent and 29.8 per cent, respectively.

Inditex, the Spanish multinational clothing company known for its popular brand Zara, has reported a sales surge of 11.1 per cent for the first nine months of its fiscal 2023 (9M FY23), reaching a striking €25.6 billion. This growth has been attributed to strong performances both in physical stores and through the company's online platforms.

Notably, sales were positive across all geographical regions and across all of Inditex's brands, indicating a widespread appeal of its product offerings. When adjusted for currency fluctuations, sales exhibited an increase of 14.9 per cent, the company said in a press release.

The company's gross profit rose by 12.3 per cent to reach €15.2 billion. A significant factor in this increase is the gross margin, which climbed to 59.4 per cent, marking an improvement of 67 basis points compared to the same period in FY22.

Operating expenses also reflected a positive trend, increasing by 10.6 per cent, a rate that is notably lower than the sales growth.

The earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw a healthy rise of 13.9 per cent, amounting to €7.4 billion. Similarly, earnings before interest and taxes (EBIT) increased by a remarkable 24.3 per cent to €5.2 billion. Profit before taxes (PBT) followed suit, showing a robust growth of 29.8 per cent, also reaching €5.2 billion.

Inditex's net income for 9M FY23 was particularly noteworthy, with an increase of 32.5 per cent, culminating in a total of €4.1 billion. By the end of 9M FY23, Inditex's global presence was marked by its operation of 5,722 stores.

Fibre2Fashion News Desk (DP)

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