Corrections & Amplifications
This headline was corrected at 0717 GMT to ponder Inditex Operating Margin 20.5%, not Inditex 9-Mos Operating Margin 29%
By Andrea Figueras
Inditex reported an boost in sales and earnings for the first nine months of fiscal 2024 and raised its gross margin expectations on the back of what it called a strong execution of its business.
The Spanish fashion giant said on Wednesday that it made earnings before interest and taxes of 5.19 billion euros ($5.60 billion) in the nine months to Oct. 31, up from EUR4.18 billion in the same period of last fiscal year.
Third-quarter EBIT reached EUR2.03 billion, ahead of analysts’ expectations of EUR1.97 billion, according to a poll of analysts’ estimates compiled by FactSet.
Net income for the nine-month period increased to EUR4.1 billion from EUR3.1 billion last year.
Nine-month sales rose 14.9% at constant currency to EUR25.61 billion, implying third-quarter sales of around EUR8.76 billion, while analysts had anticipated quarterly sales of EUR8.88 billion, according to FactSet.
For the year as a whole, the company, which also owns Bershka and Massimo Dutti among other brands, said that it now expects a gross margin of around 75 basis points higher than last year, up from a previous forecast of a stable gross margin plus or minus 50 basis points. In fiscal 2023, the company posted a gross margin of 57%.
At current exchange rates, it estimates a negative 4% currency impact on sales, while it previously anticipated a 3.5% negative impact.
Stockholm-based H&M Hennes & Mauritz, one of the company’s main competitors, is set to report fourth-quarter sales on Friday.
Write to Andrea Figueras at andrea.figueras@wsj.com
