Inditex has announced impressive financial results for early 2024, showcasing strong growth.
- Revenue rose by 7.1% year-on-year to €8.2bn (£7bn) due to strong seasonal sales.
- Gross profit increased by 7.3% to €4.9bn (£4.2bn) alongside an 8% EBITDA rise to €2.4bn (£2bn).
- Store and online sales saw a significant 12% year-on-year increase from May to June 2024.
- Plans include a €1.8bn (£1.5bn) investment in new distribution centres and updated security measures.
Inditex has demonstrated a robust financial performance for the period from 1 February to 30 April 2024, attributing a 7.1% year-on-year increase in revenue to €8.2bn (£7bn) to its successful spring/summer 2024 sales. The group, which incorporates brands such as Zara, Pull & Bear, Massimo Dutti, Oysho, Bershka, and Stradivarius, has reported that these collections have been well received by customers.
A detailed analysis of Inditex’s financial metrics reveals a 7.3% year-on-year growth in gross profit, reaching €4.9bn (£4.2bn). Additionally, the earnings before interest, taxes, depreciation, and amortisation (EBITDA) displayed an impressive 8% rise, amounting to €2.4bn (£2bn). This indicates not only increased sales but also effective cost management and operational efficiency.
In the early days of the second quarter of 2024, Inditex recorded a commendable 12% year-on-year growth in store and online sales from 1 May to 3 June. This growth reflects the company’s successful adaptation to current market demands and its ability to engage consumers both in physical stores and through digital platforms.
Inditex has also embarked on strategic expansions with new store openings across 28 markets in the first quarter, concluding the period with 5,968 stores. Notably, Zara continues to expand its footprint aggressively, with 1,806 stores now under its banner, highlighting the brand’s significant contribution to the group’s overall performance.
Looking towards the future, Inditex has outlined plans to invest €1.8bn (£1.5bn) over the next two years in enhancing its logistics capabilities through the construction of new distribution centres. Moreover, the group is set to implement cutting-edge security technology across its outlets, with Zara projected to fully integrate these advancements by the end of 2024.
Inditex’s impressive early 2024 performance and strategic investments position the company for continued success.
