Inditex closed the first nine months of its fiscal year with record results in both sales and profits, as is customary in each presentation to the market, although below analysts’ expectations. The Galician textile giant records an increase in revenue of 7.1%, to 27,442 million euros in the accumulated period from February to October, with a net profit for that period of 4,449 million, 8.5% more.
The third quarter is the most profitable period of the year, and it has been so again. From August to October, the group’s net profit stood at 1,681 million euros, 14% more than in the second, but only 5.8% higher than the third quarter of the previous year. It is the smallest quarterly increase in profits since the end of the pandemic. The Bloomberg analyst consensus forecast a net profit of €1,763 million, representing an 11% boost. Renta 4 even pointed to a 13% rebound for this period, so the profit that Inditex finally reaped in the third quarter ended up being well below what was expected.
During these months, sales improved by 6.8%, at a rate slightly lower than that seen in the rest of the year, with 9,357 million euros. In this case, the income of the third quarter is usually lower than that of the second, because the latter monopolizes the activity with a view to the summer campaign and coincides with the most important part of the July sales.
Between August and October, the period that covers the third quarter, there is no promotional campaign, so it is the one that always shows the best profitability figures of the entire year, by marketing almost all products at full price. This translates into a higher net profit, and also a higher gross margin than the rest of the quarters.
News in development. There will be expansion
