Zara owner and multinational clothing company Inditex has recorded a net income of €4.1bn ($4.4bn) in the first nine months of fiscal 2023 (9M2023), up 32.5% from the same period in fiscal 2022.

The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) for the period increased 13.9% to €7.4bn.

Earnings before interest and taxes (EBIT) rose by 24.3% to €5.2bn in 9M2023, and its profit before tax also grew by 29.8% to €5.2bn.

During the period ending 31 October 2023, the retailer’s sales increased by 11.1% to €25.6bn, driven by strong performance both in stores and online.

The retailer also recorded positive sales in all geographical areas and all concepts.

Its operating expenses increased 10.6%, below sales growth.

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By GlobalData

Inditex delivered a gross profit of €15.2bn in 9M2023, an increase of 12.3% from the corresponding period in fiscal 2022.

Gross margin increased 67 basis points (bps) from 9M2022 to 59.4% this year.

The retailer said that it opened the fourth quarter strongly, with store and online sales up 14% on a constant currency basis between 1 November and 11 December 2023.

For fiscal 2023, Inditex expects a gross margin to be higher than in FY2022 by around 75bps.

The company stated: “Inditex continues to see strong growth opportunities. Our key priorities are to continually improve the fashion proposition, to enhance the customer experience, to increase our focus on sustainability and to preserve the talent and commitment of our people.

“Prioritising these areas will drive long-term growth. To take our business model to the next level and extend our differentiation further, we are developing several initiatives in all key areas for the coming years.”

The retailer ended 9M2023 with 5,722 stores.