Spanish retailer Inditex's revenue ascends 13.5% in H1 FY23

The group's sales in constant currency exhibited a notable increase of 16.6 per cent. Additionally, the gross profit escalated by 14.1 per cent to stand at €9.8 billion, elevating the gross margin to 58.2 per cent, which is 27 basis points (bps) higher compared to the same period last year, Inditex said in a press release.

Operating expenses saw an uptick of 12.5 per cent, a figure below the sales growth, depicting a healthy financial standing of the company. EBITDA soared by 15.7 per cent to reach €4.7 billion, and EBIT burgeoned by a substantial 30.2 per cent to €3.2 billion. The period before tax (PBT) noted an increase of 39 per cent to €3.3 billion, while the net income experienced a spike of 40.1 per cent, culminating at €2.5 billion.

Over the course of H1 FY23, Inditex expanded its footprint by inaugurating outlets in 20 new markets, taking the total count of operational stores to 5,745 globally by the end of the period.

Dissecting the performance of individual retail concepts, Zara took the lion's share with sales reaching €12.362 billion, a 13.1 per cent increase compared to H1 FY22. Other brands under the Inditex umbrella also fared well with Pull&Bear witnessing an 11.4 per cent increase at €1.042 billion, Massimo Dutti rising by 16.8 per cent to €842 million, Bershka climbing 12.3 per cent to €1.184 billion, Stradivarius increasing by 17.7 per cent to €1.075 billion, and Oysho recording a sales figure of €346 million, up by 18.3 per cent.

On the geographical front, Europe (excluding Spain) remained a dominant player, accounting for 47.8 per cent of the total sales, marking an increase from 46.3 per cent in H1 FY22. The Americas contributed to 19.4 per cent of the sales, a slight dip from the 20.1 per cent recorded in the previous year. Asia and the rest of the world constituted 18.4 per cent, and Spain maintained a steady pace with a 14.4 per cent share in the total sales.

“The H1 FY23 results demonstrate that the talent of our teams continues to consolidate the improvements in the performance of our business model. The ongoing commitment to creativity, quality and customer experience, as well as the determined progress in sustainability, drives a strategy that is taking our business to the next level,” said Oscar Garcia Maceiras, CEO.

Fibre2Fashion News Desk (DP)