Inditex Expands Into Uzbekistan, Resumes Operations In Ukraine
In Q1 2024, Inditex achieved robust operating results, driven by team creativity and the execution of its integrated business model. The Spring/Summer collections were well-received, with sales increasing 7.1% to €8.2 billion and a constant currency growth of 10.6%. Gross profit rose 7.3% to €4.9 billion, with a gross margin of 60.6%.
Operating expenses grew by 6.4%, below the sales growth rate, resulting in an EBITDA increase of 8% to €2.4 billion. EBIT rose 10.3% to €1.6 billion, while PBT grew 11.1% to €1.7 billion. Net income saw a 10.8% rise to €1.3 billion. Cash from operations increased significantly, ending the quarter with €7.7 billion in cash and equivalents.
Inditex opened stores in 28 markets and launched its first stores in Uzbekistan. It reopened 19 stores and resumed online operations in Ukraine. The company operated 5,698 stores by the end of the period.
The company plans a €1.54 per share dividend for FY2023, split into two payments of €0.77 each. The final payment will be made on November 4, 2024.
Looking forward, Inditex sees strong growth opportunities, focusing on fashion innovation, customer experience, sustainability, and leveraging team talent. Store and online sales from May 1 to June 3, 2024, increased 12% in constant currency compared to the same period in 2023. Inditex plans a logistics expansion and investments to enhance capabilities and competitive differentiation.
The company expects annual gross space growth of around 5% from 2024-2026 and a stable gross margin for FY2024. Inditex continues to innovate with new collections and store enhancements, ensuring a superior shopping experience both in-store and online.
