Inditex, the parent company of Zara, has announced robust growth with a 7.1% increase in revenue, highlighting strong sales of the spring/summer collection.
- For the period from 1 February to 30 April 2024, Inditex reported revenue reaching €8.2bn (£7bn), marking a significant year-on-year growth.
- The group’s gross profit rose by 7.3% to €4.9bn (£4.2bn), while EBITDA experienced an 8% rise to €2.4bn (£2bn), reflecting financial strength.
- A 12% increase in store and online sales in constant currency was recorded from 1 May to 3 June 2024, demonstrating continued consumer interest.
- Inditex plans to invest €1.8bn (£1.5bn) over the next two years in new distribution centres and security technology.
Inditex, the owner of brands such as Zara, Pull & Bear, and Massimo Dutti, has reported a 7.1% year-on-year increase in revenue, reaching €8.2bn (£7bn) for the period of February to April 2024. This growth underscores the strong consumer demand for its spring/summer collections, which have been well received across global markets.
The company’s gross profit rose by 7.3% to €4.9bn (£4.2bn), while earnings before interest, tax, depreciation, and amortisation (EBITDA) saw an 8% increase, reaching €2.4bn (£2bn). This growth in profit margins indicates a solid operational performance, likely driven by both efficient cost management and strong sales volumes.
Between 1 May and 3 June 2024, Inditex experienced a 12% year-on-year increase in store and online sales when assessed in constant currency terms. This surge highlights the ongoing consumer interest in Inditex’s diverse brand offerings and their successful adaptation to market preferences.
In addition to its sales and profit achievements, the company announced plans to invest €1.8bn (£1.5bn) over the next two years to enhance its logistics capabilities with new distribution centres. Inditex is also set to implement advanced security technology in its stores, with full operationalisation in Zara by 2024.
The company concluded the first quarter with a total of 5,968 stores worldwide, including 1,806 Zara outlets, underlining its expansive retail footprint. This growth in physical locations is complemented by the group’s strategic investments aimed at bolstering its future operational efficiencies.
Inditex’s impressive financial performance and strategic plans position it well for continued success in the global market.
