The success of the brand can be explained by the “dynamic” of its sales, “both in its stores and on the Internet”.
The world number one ready-to-wear company Inditex, owner of the Zara brand, announced on Wednesday that it had achieved a new record profit in the third quarter, thanks to the dynamism of its sales, both in its stores and on the Internet. Over this period, which ended on October 31 due to a staggered financial year, the Spanish giant obtained 1.68 billion euros in net profit, or 6% more than the 1.59 billion euros. of the third quarter of 2023, which constituted its previous record.
This result is the highest ever recorded by the group over a quarter. However, it is lower than the forecasts of analysts surveyed by the financial information provider Factset, who expected on average 1.77 billion euros in net profits. Over the first nine months of the year, the profit of the cheap fashion giant, owner of seven brands including Zara, Bershka, Massimo Dutti and Stradivarius, amounted to 4.45 billion euros, compared to 4.1 billion over the same period of 2023. The group chaired by Marta Ortega, daughter of the multibillionaire founder of Inditex Amancio Ortega, explains this strong growth by the dynamism of its sales, which reached 27.42 billion euros over nine months (+7%), “both in its stores and on the internet”.
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Inditex also believes that it has maintained “very satisfactory margins”thanks to its cost control policy: since the start of its financial year, the group based in Galicia, in the north-west of Spain, has seen its gross margin increase by 7.2%, to 59.4 % of its turnover. The inexpensive fashion giant also says it is optimistic for the months to come, its sales having continued to increase in recent weeks (+9% year-on-year at constant exchange rates for the period from November 1 to 9). December), despite a complex environment.
The textile sector has in fact been facing increasing competition for several years, with the rise of ultra-low-cost brands such as the Chinese brand Shein or the Irish brand Primark, which are destabilizing traditional ready-to-wear players. to carry. At this stage, however, this context has not affected the Galician group, whose results have now been increasing for 15 consecutive quarters. Inditex, a solid leader in the sector with 170 billion euros of capitalization, has seen its stock jump 44% over the past year.
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