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Inditex, the parent company of Zara, reported robust sales growth across all its key brands in the first half of 2024, driven by strong demand for its spring and summer collections. The Spanish fashion retailer’s revenue rose by 7.2% to €18.1 billion for the six months ending July 2024. This growth, along with improved gross margins, resulted in a 7.5% increase in gross profit, reaching €7.5 billion.
Underlying profits (EBITDA) climbed by 8% to €5 billion, while net income saw a 10% rise to €2.8 billion. Zara, the largest brand within Inditex's portfolio, contributed significantly, with sales increasing by 5.4% to €13 billion during the period. The brand operates 1,792 outlets worldwide.
Óscar García Maceiras, Inditex's chief executive, highlighted the strength of the company’s integrated business model, which continues to provide opportunities for profitable growth across various regions, channels, and concepts. He noted that the spring and summer collections were well-received by customers, both in-store and online, contributing to the overall sales growth of 7.2%. Sales in constant currency grew by 10.2%, demonstrating positive performance across all Inditex brands.
In addition to Zara, Inditex owns several other popular brands, including Pull & Bear, Massimo Dutti, Oysho, Bershka, and Stradivarius. The company indicated that its autumn and winter collections are also performing well, providing optimism for the second half of the year.
At the close of the interim period, Inditex operated 5,667 stores globally. The company reaffirmed its intention to expand its retail space by 5% over the 2024-2026 period, which is expected to contribute positively to sales alongside the continued strong growth of online channels.
To support its expansion and streamline operations, Inditex is implementing a two-year logistics upgrade, backed by a €900 million investment. The company aims to leverage the latest technology to enhance efficiency in its distribution network.
At the half-year mark, Inditex reported net cash of €10.9 billion, with €1.9 billion generated in free cash during the first six months. This strong cash position reflects the company's solid financial health and its ability to support ongoing growth initiatives across its various brands and markets.
