The giant is getting bigger. Inditex does not stop breaking one record after another and the figures give the reason for Marta Ortega to change her plans. The ambition of the Galician textile multinational remains intact and her statements endorse it: “we continue to see great opportunities for growth”, she alleges. The results of its first fiscal quarter (from February 1 to April 30) are the best in history in this period: it has broken the one billion barrier after marking a net profit of 1,168 million euros, 54% more than the previous year.
The success of this figure stems from skyrocketing sales since the beginning of the year: billing 13% more, up to 7,611 million euros, despite the high inflationary tension that runs through the main economies of the world. And it does so without counting on two of its main markets, Russia and Ukraine, as a result of the Russian military invasion of its European neighbor.
The unbridled rate of billing sets their sights on a new milestone: surpassing the 32,569 million sold last year and the 4,130 million registered profit. And the current records are in that line: billing between May 1 and June 4 was 16% higher than the same period in 2022. At the same time, the company has managed to place its expenses below revenues, boosting the net result. With these figures, it is not out of the question to see Inditex above 35,000 million in sales and approaching 4,500 million profits.
Everything is good news in Arteixo, from where the saying of the markets is contemplated, that today the company’s titles are improving by almost 6%. Investors have seen their expectations satisfied and considerably improved in a prime that, traditionally, is less powerful than others. The presentation of results has also raised the capitalization of its securities on the stock market to all-time highs, to exceed 105,000 million euros after an increase of more than 5%.
As it is not a sales season, the results are based solely on the spring and summer collections that their brands have displayed, and that have not only given the expected result, but also show the benefit of their clients to their product proposal. fashion, one of Inditex’s priorities. Giving priority to all improvements in this area seems essential, since they will allow “boosting long-term growth” along with other challenges, such as optimizing the customer experience, greater application of sustainability policies or preserving talent.
Focus on productivity
This bet seems to have gone well for the company, which boasts a business model: “its execution in the first quarter of 2023 has been very outstanding.” Such is the confidence in its commercial proposal that its CEO, Óscar García Maceiras, has dared to anticipate in a conference with analysts that the growth of the company in the coming years will come hand in hand with an improvement in productivity, instead of to entrust everything to sales.
The higher performance of its assets is already having its reflection in the accounting of the textile group. In a statement sent by the company, Inditex estimates that store sales will continue to maintain a “strong” productivity, which is why it will increase its total area by 3% in 2023. To this we must add the growth expectations of the online sales, which today already show “a very positive evolution” and are expected to continue to have a “growing share” in the group’s total turnover.
Despite this, Inditex is not stopping its expansion plans and will allocate In addition, they have highlighted the “continuous task” of optimizing their stores. The growth plans revealed by García Maceiras place Spain, the United States and China as the main target markets,