Spanish retail company Inditex has reported that its revenue for the first quarter (Q1) of the fiscal year 2022 (FY22) grew by 36% to €6.74bn ($7.2bn) compared with the corresponding period of FY21.
The company’s revenue for the three months to 30 April was driven by an improvement in store footfall and a positive customer reception to new season collections from all seven of its brands.
Go deeper with GlobalData
Inditex’s revenue from online sales dropped by 6% from last year as stores reopened following the relaxation of restrictions due to Covid-19.
In response to its ‘robust’ business performance, the company’s net profit for Q1 increased by 80% to €760m from a year earlier.
Its gross margin rose to 60.1%, its highest level in ten years, while its operating expenses growth was below its sales growth at 24%.
Inditex registered a 55% growth in earnings before interest, taxes, depreciation and amortisation (EBITDA) to €1.92bn, while its EBIT was €1.03bn, up by 82% from the same period of the prior year.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataInditex CEO Óscar García Maceiras said: “The strength and adaptability of the business model and the excellent performance of our creative, sales and operating teams are driving that differentiation forward, underpinned by a strategic focus on innovation, digitalisation and sustainability.”
Inditex has temporarily suspended its operations in Ukraine and Russia due to the ongoing geopolitical conflict in the region.
In China, Covid-19 related restrictions have impacted the business of 67 of the company’s stores.
Inditex started the second quarter (Q2) of FY22 with its sales up by 17% on a constant currency basis between 1 May and 5 June.
Last month, the company signed a three-year agreement with Finnish recycling company Infinited Fiber Company worth more than €100m.
As part of the agreement, Inditex will acquire 30% of the future production of Infinna, a textile fibre created entirely from textile waste.
