Inditex leaves the pandemic behind after it reduced its profits by almost 70% in 2020, the worst year in its history. But the company has solved the crisis and in its first fiscal quarter (from February to April) it has already recorded a net profit of 421 million euros compared to losses of 409 million that it had in the same period of 2020 due to the closure of stores around the world and movement restrictions, as reported by the company this Wednesday.
With a clear bet on online commerce And thanks to the opening of its physical stores, the company has already managed to sell even more than before the pandemic, reaching a turnover from May to June -last known figures- 102% more than in the same period of 2020 and 5 % more than in 2019. Going back to the first quarter, its sales increased by 50% to obtain 4,942 million euros thanks to the fact that online sales grew by 67%, beating analysts’ forecasts.
And that there are still restrictions in some places: Inditex ensures that they do not have 24% of the total business hours and that 16% of the stores were still closed in the first quarter and the others with capacity restrictions in key markets such as the United Kingdom , France, Germany, Italy, Portugal and Brazil. “The differentiation and strategic transformation towards a fully integrated, digital and sustainable business model continues to yield results,” he said. Pablo Isla, president of Inditex.
The gross margin on sales reached 2,962 million euros, 60% on sales, compared to 58.4% the previous year, 152 basis points more compared to 2020, and 47 compared to 2019. Likewise, the gross operating result ( Ebitda) reached 1,235 million, 155% higher than a year ago, while the net operating result (Ebit) is 569 million compared to the negative 508 in 2020.
Therefore, the company highlights in its statement that the results of this first quarter show a “progressive recovery”, reaching a net financial position of 7,176 million euros in this period, 25% more than a year ago and the highest in the first quarter. All this thanks to the “solid” operating performance, which has allowed it to contain the growth of operating expenses by 19% and control of the inventory growing below sales compared to 2020 and decreasing compared to 2019.