Zara owner profits surge by 28% in FY23
Over the year, store sales rose by 7.9%, reflecting incremental footfall and increasing store productivity, while online sales rose by 16% to €9.1bn (£7.8bn)
Zara owner Inditex has welcomed a “very robust” FY23 performance, as profit-before-tax surged 28.2% to €6.9bn (£5.9bn) while sales rose by 10.4% to €35.9bn (£30.7bn).Gross profits rose by 11.9% to €20.8bn (£17.8bn), and EBITDA increased 13.9% to €9.9bn (£8.5bn) as the group reported strong results both in stores and online.
Over the year, store sales rose by 7.9%, reflecting incremental footfall and increasing store productivity, while online sales rose by 16% to €9.1bn (£7.8bn).
Following the results, the group said its board will propose a dividend increase of 28% at its AGM.
The group also announced a logistics expansion plan, with a two-year investment programme that will allocate €900m (£769m) per year to increase logistics capacities in FY24 and FY25.
In addition, the business has seen a strong start to the year as store and online sales in constant currency increased 11% between 1 February and 11 in March 2024 versus the same period in 2023.
CEO Oscar García Maceiras said: “Inditex’s performance in 2023 has been excellent. Our teams have been able to take advantage of the opportunities to keep growing profitably. We are investing to drive future growth and continue to offer an attractive remuneration to shareholders.”
