FX.co ★ Inditex Q1 Results Rise; Proposes Dividend, Sees Stable Gross Margin In FY24

Inditex SA (IDEXF.PK), the renowned Spanish clothing company, announced a 10.8% increase in its first-quarter net income, reaching €1.29 billion compared to last year's €1.17 billion. Earnings per share also rose to €0.416 from €0.375 in the previous year.

The company's profit before tax saw an 11.1% increase, amounting to €1.7 billion. EBIT grew by 10.3% to €1.6 billion, while EBITDA marked an 8% increase, reaching €2.4 billion.

Sales experienced a 7.1% rise, totaling €8.15 billion, up from €7.61 billion the previous year. When measured in constant currency, sales growth was 10.6%.

Moreover, Inditex's Board of Directors has proposed a dividend of €1.54 per share for FY2023, to be discussed at the Annual General Meeting on July 9. The final dividend payment is scheduled for November 4.

In terms of current trading, the company reported a 12% increase in store and online sales in constant currency between May 1 and June 3, compared to the same period in 2023.

Looking ahead to fiscal 2024, Inditex anticipates a stable gross margin, with a potential fluctuation of plus or minus 50 basis points, and a 2% negative currency impact on sales at current exchange rates.

The company continues to identify robust growth opportunities and is implementing various initiatives across key areas for the upcoming years. The annual gross space growth from 2024 to 2026 is projected to be around 5%.

Further, to capitalize on the strong future growth prospects, Inditex is rolling out a logistics expansion plan for 2024 and 2025.

At the forthcoming Annual General Meeting, the Board will propose the renewal of Baroness Denise Kingsmill and the appointment of Belen Romana García as independent board members.