Inditex reveals boost to net sales and profit

The parent company of Zara, Inditex, has posted “strong” trading results for the first nine months of the year.

Following a “strong operating performance”, net sales across its brands were €19.8bn (£16.73 bn) marking a year-on-year increase of 7.5%.

Net profit for the fashion group, which also owns Massimo Dutti, Bershka and Pull&Bear, increased by 12% to €2.7bn (£2.3bn), against the €2.4bn (2bn) reported the previous year. 

In the nine month period, EBITDA was reported at €5.7bn (£4.8bn), compared to the €3.9bn (£3.3bn) reported in the same period the year prior. 

Excluding the effects of new lease accounting standard, IFRS 16, EBITDA increased 10%. This was due to certain lines of income statement becoming non-comparable with 2018 figures following the new rules. 

Looking ahead to its full year results, the group said it estimated a like-for-like growth in sales between 4% and 6%.

The “strong” results are in part due to tightly managed operating expenses following the “implementation of efficiencies”, as well as growth in online retail.

Following this period, all of the group’s brands now operate worldwide through online sites, allowing them to reach over 200 markets across the world. 

The group said it “continues to roll out its global, fully integrated store and online platforms”, whilst it also continues to “remain very active in the differentiation of its store base”. 

Inditex currently operates 7,486 stores in 96 markets, having opened in 41 new markets throughout the period. 

Executive chairman, Pablo Isla, said: “Solid growth is being delivered by our integrated stores and online model, thanks to our focus on the highest-quality locations, store environments, products and customer experience both in stores and online. 

“Crucially, this is coupled with strategic investments in technology and sustainability.”

The group’s full year results will be published on 18 March 2020.