- Prachi Singh |
In 1H2018 Inditex said that the its net sales reached 12 billion euros (13.9 million dollars), 3 percent higher than in 1H2017, while sales in local currencies increased by 8 percent. The company added that its like-for-like sales grew 4 percent in 1H2018 on 6 percent in 1H2017 and were positive across all geographies. During the period under review, Inditex opened stores in 44 markets and operated 7,422 stores in 96 markets.
The gross profit for the period rose to 6.8 billion euros (7.8 billion dollars), 4 percent or 10 percent higher in local currencies than the previous year. The gross margin reached 56.7 percent of sales, an increase of 30bps and now the company’s management estimates gross margin expansion of around 50 bps in 2H2018. EBITDA came to 2.3 billion euros (2.6 billion dollars), 2 percent or 14 percent higher in local currencies than the prior year, while EBIT was 1.8 billion euros (2 billion dollars), 2 percent or 17 percent higher in local currencies than the prior year.
Inditex added that net income for the period was 1.4 billion euros (1.6 billion dollars), 3 percent higher than the prior year. Inditex paid 1.2 billion euros (1.3 billion dollars), 0.375 euro per share, on May 2, 2018 as FY2017 interim ordinary dividend and 0.375 euro per share will be payable on November 2, 2018 as FY2017 final ordinary and bonus dividend.
Inditex further said that the management estimates like-for-like sales growth of 4-6 percent in 2H2018 and ordinary capital expenditure in FY2018 of approximately 1.5 billion euros driven mainly by the addition of new space in prime locations during the year.
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Picture credit:Zara via FashionUnited