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Zara Parent Co Inditex’s Sales Surge in 2023: Grow 10.4% to €35.9 Bn

In 2023, Inditex, the global fashion retailer, reported robust operating performance, achieving historic highs in sales, EBITDA, and net income. The company attributes its success to strong execution and the creativity of its teams within its fully integrated business model.

Inditex’s sales surged by over 10.4% to €35.9 billion, with growth evident across both physical stores and online platforms. This growth trend was consistent across all geographical regions and concepts, with sales in constant currency expanding by 14.1%.

The company’s operating model demonstrated resilience, with gross profit increasing by 11.9% to €20.8 billion. EBITDA and EBIT grew by 13.9% and 23.4%, respectively, indicating strong operational efficiency. Additionally, net income soared by 30.3% to €5.4 billion.

Inditex’s financial health also saw significant improvement, with lease-adjusted funds from operations and cash from operations growing by 22.2% and 37.2%, respectively. The company’s net cash position expanded by 13.3% to €11.4 billion.

The Board of Directors proposed a substantial dividend increase of 28% to €1.54 per share for FY2023, comprising an ordinary dividend of €1.04 and a bonus dividend of €0.50 per share. This dividend will be distributed in two equal payments, with the first installment scheduled for May 2, 2024, and the second for November 4, 2024.

Looking ahead, Inditex remains committed to sustainable and profitable growth. The company experienced significant sales and productivity growth in 2022-2023, with sales expanding by 35% in constant currency. In the period from 2024 to 2026, Inditex anticipates a 5% growth in annual gross space.

In line with its growth strategy, Inditex plans to invest approximately €1.8 billion in ordinary capital expenditure in 2024. These investments will primarily focus on optimizing commercial space, technological integration, and enhancing online platforms.

Furthermore, Inditex has initiated a two-year extraordinary logistics expansion plan, allocating €900 million annually to increase logistics capacities. These investments aim to bolster the company’s capabilities to address strong growth opportunities globally, with projects set to commence operation by the second half of 2025.

Inditex has kicked off 2024 on a positive note, with its Spring/Summer 2024 collections garnering strong customer reception. Store and online sales during the initial period of the year increased by 11% compared to the same period in 2023.

As Inditex continues to strengthen its market position and pursue growth opportunities, the company remains optimistic about its future prospects.

Inditex comprises seven brands: Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home, selling in 213 markets through online platforms and over 5,800 stores.

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