July 13, 2024
Financial Results

Inditex Q12024: Strong Operating Performance

Inditex’s robust operating performance in Q12024 is attributed to the creativity of its teams and the effective execution of its integrated business model. The Spring/Summer collections were well received, leading to a 7.1% sales increase, reaching €8.2 billion. Sales in constant currency grew by 10.6%.

Gross profit rose by 7.3% to €4.9 billion, with a gross margin of 60.6%. Operating expenses increased by 6.4%, below sales growth, while EBITDA grew by 8% to €2.4 billion. EBIT increased by 10.3% to €1.6 billion, and PBT by 11.1% to €1.7 billion. Net income rose by 10.8% to €1.3 billion.

Cash from operations increased significantly, with cash and cash equivalents reaching €7.7 billion by April 30, 2024. Inventory levels were 3% lower compared to the previous year, indicating high-quality collections.

Key Achievements and Expansion
In Q12024, Inditex opened stores in 28 markets, including its first stores in Uzbekistan and the reopening of 19 stores in Ukraine. By the end of the period, Inditex operated 5,698 stores.

Second Quarter Outlook
The Spring/Summer collections continue to perform well, with store and online sales in constant currency increasing by 12% between May 1 and June 3, 2024.

Growth and Sustainability Initiatives
Inditex is focused on enhancing its fashion proposition, customer experience, sustainability and talent. The company sees strong growth opportunities in a fragmented sector and plans to invest €1.8 billion in ordinary capital expenditure in FY2024. An additional €900 million per year will be allocated to logistics expansion in 2024 and 2025.

Store Innovations and Expansions
Inditex continues to innovate and expand its store presence. New locations and major refurbishments include Zara in Athens, Paris and Chicago, as well as Massimo Dutti in Cannes and Oysho in London. The company is also introducing new security technology to improve the customer experience.

Dividends and Board of Directors
Inditex’s Board of Directors will propose a FY2023 dividend of €1.54 per share, with the final payment scheduled for November 4, 2024. The Annual General Meeting on July 9, 2024, will include proposals for board member renewals and appointments.

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