Inditex once again achieves the best results in its history, something it has been repeating for some time, quarter after quarter, but this time there is a cloud cloud clouding this positive evolution. The owner of Zara has closed the first nine months of the year with a net profit of 4,449 million euros, which represents a take-off of 8.5% compared to 2023. Meanwhile, its sales grew by 7.1%, up to 27,422 million of euros.
However, the exchange rates have hurt it, because the evolution of currencies has subtracted more than three points from this income trend.
The company has explained in the presentation to investors that this impact of currencies is due to the “combination of two factors.” On the one hand, to the strength of the euro. On the other hand, to “the devaluation of the Brazilian real and the Mexican peso.” An evolution that has changed in the fourth quarter, because these currencies are stronger as is the dollar compared to the euro, he indicated, which will be good for Inditex.
Furthermore, the evolution in the third quarter of the year, summer and early autumn, has not been as good as in previous years. Between August and October, the profit of the owner of Massimo Dutti, Bershka and Pull & Bear stood at 1,681 million euros. This figure is 5.8% above what was achieved in 2023, during the same months, which represents a slight slowdown compared to previous years.
With these data, the company began Wednesday’s stock market session with a drop in its share value of more than 6%.
No impact from DANA
The CEO of Inditex, Óscar García Maceiras, has assured in that same presentation that the “development” of the Galician company is “very satisfactory” and that all chains are making positive progress.
Arteixo’s company does not give details of the evolution by country, but it has pointed out to analysts that the October DANA has not had an impact on its results. Its head of capital markets, Marcos López, has indicated that the consequences in terms of results and logistics have been “practically zero” and “very limited.”
And regarding the final stretch of the year, the company states in the information it has sent to the National Securities Market Commission (CNMV) that “sales in store and online at a constant exchange rate between November 1 and November 9 December 2024 have grown by 9% compared to the same period in 2023.”
However, it once again assumes a currency impact, although it has been mitigated, which will be equivalent to 3% of its sales.
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