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Inditex’s sales in constant currency grew by 20 per cent in 9M FY22. The company’s sales were positive in all geographic areas. Operating expenses increased by 17 per cent, compared to 9M FY21, below sales growth.
Spanish multinational clothing company Inditex has reported a 19-per cent growth in sales to €23.1 billion in the first nine months (9M) of fiscal 2022 (FY22), compared to the corresponding period of previous fiscal. The company’s gross profit in 9M FY22 increased 19 per cent to €13.5 billion, compared to 9M FY21. The gross margin reached 58.7 per cent.
Inditex’s online sales continue progressing satisfactorily in 9M FY22 and were above the record figures of 9M FY21, the company said in a press release.
In 9M FY22, EBITDA increased 20 per cent to €6.5 billion, compared to the corresponding period of the previous fiscal. EBIT in 9M FY22 increased 27 per cent to €4.2 billion and profit before tax increased 25 per cent to €4 billion, compared to 9M FY21.
The company’s net income in 9M FY22 increased 24 per cent to €3.1 billion, compared to the first nine months of fiscal 2021.
Inditex expects the online sales to exceed 30 per cent of total sales by 2024. The ordinary capital expenditure in 2022 is expected to be around €1.1 billion. At current exchange rates, the company expects a neutral currency impact on sales in FY22.
Based on current information, Inditex expects a stable gross margin (positive/negative of 50 basis points) for FY22.
As per the sustainability roadmap goals, Inditex is on track to deliver upon all of the targets set for 2022, 2023, and 2025, with a particular focus on two pillars: innovation through the Sustainability Innovation Hub (SIH) and circularity.
Fibre2Fashion News Desk (DP)
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