Inditex inches higher as Zara owner unveils strong fourth-quarter start

December 13, 2023 10:58 PM AEDT | By Investing

Google News:

Inditex inches higher as Zara owner unveils strong fourth-quarter start

Recent News

Lithium Royalty Corp. Renews Normal Course Issuer Bid

Coeur Announces Second Quarter 2025 Earnings Call

Blue Owl Capital Launches U.S. Diversified Direct Lending Strategy wit...

Relativity Scales Generative AI Availability Across Asia

Investing.com -- Madrid-listed shares in Inditex (BME:ITX) rose on Wednesday after the fast-fashion giant said that it has seen a strong start to fourth-quarter trading and boosted its full-year margin guidance despite foreign exchange headwinds.

The Zara owner, which has been revamping its locations in a bid to boost sales, said that its autumn and winter collections have been well received by shoppers, with sales between Nov. 1 and Dec. 11 increasing by 14% at constant currency versus the same timeframe in 2022. Inditex added that it has seen "a very satisfactory evolution" of online demand in particular.

Although the company expects to be hit by a projected 4% currency impact on its fiscal 2023 sales, it now expects to post a gross annual margin of around 75 basis points higher than in the prior year. It had previously said gross margins would be stable during the period.

"We do not model for a sizeable increase in margins in the years ahead," analysts at Jefferies said in a note. "But we do reflect on the remarkable regularity with which the group is delivering market share gains."

The firm behind brands like Massimo Dutti and Bershka posted sales growth of roughly 7% to just under €8.8 billion ($1 = €0.9273) in the three months ended on Oct. 31, slowing from an uptick of 16% in the second quarter, in a sign of a pullback in consumer spending during a time of high inflation and elevated interest rates. Quarterly profit before tax, meanwhile, was just under €2B.

This article first appeared in Investing.com

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.