Zara owner Inditex's profit jumps, sales rise by 17.5 percent
In 2022, Inditex sales reached 32.6 billion euros, up 17.5 percent versus 2021, while sales in constant currencies grew 18 percent.
Gross profit for the year increased 17 percent to 18.6 billion euros and gross margin reached 57 percent. EBITDA increased 20 percent to 8.6 billion euros and EBIT 29 percent to 5.5 billion euros. PBT increased 28 percent to 5.4 billion euros, while net income increased 27 percent to 4.1 billion euros.
The company said, store and online sales in constant currency between February 1 and March 13, 2023 increased 13.5 percent versus the same period in 2022. Adjusting for the operations in the Russian Federation and Ukraine over 2022, store and online sales in constant currency increased 17.5 percent.
Commenting on the results, Oscar García Maceiras, Inditex CEO said: “The excellent results of 2022 show the strength of our business model and its ability to move towards the next level of development in which our fashion proposition, the experience of our customers, our commitment to sustainability and the talent of our teams will continue to be key.”
Highlights of Inditex’s 2022 results
In 2022, the company added that store sales grew 23 percent reflecting incremental footfall and increasing store productivity.
Inditex opened stores in 33 markets during the year under review with 201 openings, 186 refurbishments which include 94 enlargements and 349 absorptions. At the end of FY2022 Inditex operated 5,815 stores.
Online sales also grew 4 percent to reach 7.8 billion euros.
For FY2022, the company’s board of directors will propose to the AGM a dividend increase of 29 percent to 1.20 euros per share, composed of an ordinary dividend of 0.796 euros and a bonus dividend of 0.404 euros per share. The company said that the dividend will be made up of two equal payments on May 2, 2023 a payment of 0.60 euros per share and on November 2, 2023, a payment of 0.60 euros per share.
For 2023, at current exchange rates, Inditex expects a negative 1 percent currency impact on sales and expects a stable gross margin, positive or negative 50 bps.
Inditex ceased operations in 514 stores and online platforms in the Russian Federation on March 5, 2022 and 82 stores and online operations in Ukraine remain closed since February 24, 2022.