Inditex, the parent company of brands like Zara and Pull & Bear, has reported notable financial growth this year.
- Revenue for the period from 1 February to 30 April 2024 increased by 7.1% to €8.2bn (£7bn) year-on-year.
- Gross profit for the quarter surged by 7.3% to €4.9bn (£4.2bn), while EBITDA saw an 8% rise, reaching €2.4bn (£2bn).
- The company experienced a robust 12% increase in store and online sales between 1 May and 3 June 2024.
- Inditex is planning a €1.8bn (£1.5bn) investment in new distribution centres over the next two years.
Inditex, the owner of popular brands such as Zara, Pull & Bear, and Massimo Dutti, has reported a significant 7.1% increase in revenue, totalling €8.2bn (£7bn), for the first quarter of 2024. This growth is attributed to the strong performance of its spring/summer collections, which have been well-received by customers.
In addition to revenue growth, Inditex’s gross profit rose by 7.3% year-on-year to €4.9bn (£4.2bn), while its earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 8%, amounting to €2.4bn (£2bn). This financial uplift reflects the company’s effective strategy in managing its diverse portfolio of brands and maintaining customer satisfaction.
The company’s store and online sales recorded an impressive 12% increase in the period from 1 May to 3 June 2024, indicating strong consumer demand across all channels. This period of growth also saw the company expanding its physical presence by opening new stores in 28 markets, bringing the total number of stores to 5,968, with Zara holding the largest share with 1,806 locations.
Furthering its commitment to enhancing logistical capabilities, Inditex has announced plans to invest €1.8bn (£1.5bn) over the coming two years in the development of new distribution centres. This investment is expected to bolster the company’s operational efficiency and streamline its supply chain.
Additionally, the retailer is set to introduce new security technology in its stores, with a full rollout in Zara expected by the end of 2024. This initiative aims to improve the shopping experience and ensure customer safety within its retail spaces.
Inditex’s strategic focus on expanding its operational and security capabilities supports its continued growth trajectory.
