Sales and profits hit 'historic' highs at Inditex

The recovery at Zara-owner Inditex continued to gain momentum in the third quarter, the retail giant said on Wednesday, with both sales and income reaching fresh highs.

The Spanish retailer said net sales reached €19.3bn in the nine months to 31 October, a 37% improvement over the same period a year earlier. Gross profit was 40% higher at €11.4bn, while earnings before interest, tax, depreciation and amortisation strengthened 63% to €5.4bn. Net income was ahead 273% at €2.5bn.

In the third quarter, sales, pre-tax profits and net income reached "historic highs", the retailer said, with sales in constant currency 21% higher against the same period a year earlier, and 10% higher against the third quarter in 2019.

Third-quarter sales came in at €7.3bn while net profit was €1.2bn, in line with expectations.

Looking to the current quarter, Inditex - which also owns Massimo Dutti, Bershka and Pull & Bear - said the autumn/winter collection had been well received by customers. Store and online sales in constant currency were up 33% year-on-year between 1 November and 10 December, and 10% higher compared to the same period in 2019.

All of Inditex’s stores, many of which were shut during the worst of the pandemic, are now open.

As at 1300 GMT, shares in Inditex - the world’s biggest clothes retailer - were down 4%. Retailers are coming under increased pressure as Omicron cases continue to rise, over fears the new variant could undermine the crucial festive trading season.

Inditex founder Amancio Ortega controls the group with a 59% stake.