Inditex, the parent company of Zara, reported a 7.1% rise in sales for the first nine months of 2024, reaching €27.4bn (£23.4bn).
- Strong demand for autumn and winter collections contributed significantly to sales growth across brands like Zara and Massimo Dutti.
- Challenges such as poor weather and rising operational costs did not prevent the positive financial outcome.
- Operating expenses rose by 7%, yet remained manageable compared to sales growth.
- Inditex continues to focus on sustainable growth and enhancing customer experience.
Inditex’s sales increased by 7.1% to €27.4 billion (£23.4 billion) in the first nine months of 2024, propelled by high demand for its autumn-winter collections. This performance was notable amid tough conditions affecting other retailers, like adverse weather and heightened operational expenses.
The Spanish company, owner of brands such as Zara, Massimo Dutti, Pull & Bear, Bershka, and Stradivarius, saw its gross profit grow to 7.2%, amounting to €16.3 billion (£14.0 billion). Remarkably, Inditex maintained a stable gross margin of 59.4%.
Operating costs increased by 7%, which was below the sales growth rate. This balance supported strong profit margins. Furthermore, the company’s EBITDA rose by 7.2%, while net profit experienced an 8.5% increment, reaching €4.4 billion (£3.8 billion).
Inditex reported that its autumn and winter collections were “very well received”, leading to a 9% sales increase in constant currency from November to early December, exceeding forecasts. Online sales remained a significant growth driver, showing a 10.5% contribution to total sales for the period.
Looking forward, Inditex is optimistic about future growth prospects. The group prioritises improving their fashion offerings, boosting customer experience, focusing on sustainability, and nurturing its workforce’s talent and dedication. It is developing several initiatives to further differentiate its business model in the coming years.
Inditex’s strategic focus on collection strength and operational efficiency has secured its growth trajectory amid challenging market conditions.
