In Spain, the earnings season is not closed until the main company in the national market presents: Inditex. The Galician textile company will release its third quarter accounts this Wednesday and in them experts expect that The company reports historic gross profits.
It was already predicted that this was going to be a new historic year for Inditex’s figures. After two quarters beating analysts’ expectations, for this occasion they set the company’s gross profits above 3,000 million eurosin the 3,036 million specifically. This would not only represent a 10% improvement year-on-year, but also the highest profit figure ever achieved by the company in a quarter.
The projections collected by Bloomberg they point to a 9% increase in revenue up to 9,536 million euros (compared to 8,758 million in the same period of the previous year) and a stable gross margin at 61.7%. Net profit is where experts expect the greatest growth, going from registering a figure of 1,589 million euros in the third quarter of 2023 to 1,763 million in this period of 2024, which represents a growth of 12%.
“While demand for clothing products has been relatively buoyant in most European countries during Inditex’s third quarter (ended October), We believe that the group will continue to outperform its peers and will be able to increase its sales by more than 9% in the period, in line with the results already reported by the group in August,” they argue from Barclays.
Stock at all-time highs
Inditex shares arrive at this quarterly meeting again in the zone of historical highs. In the few sessions of December, the firm chaired by Marta Ortega revalued close to 7% and Its increase in the year is already close to 42%.
Currently its shares are moving in the area of 55 euros and, although at the moment according to the consensus of analysts it is trading without potential, they are up to four analysis banks already offer valuations above 60 euros for Inditex shareswhich would leave the company with an upward path of 9% or more by 2025.
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