Inditex earns 1.4 billion €, 3% more; sales exceed 12 billion € for the first time

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Inditex has presented its results for the first half of the fiscal year (1 February – 31 July 2018). The company obtained a net profit of 1.409 billion euros, which means an increase of 3% compared to the 1.36 billion euros in the same period last year.

Sales for the period were 12.03 billion euros, 3% larger than those of the first half of 2017, when they rose to 11.6 billion euros. For the first time in its history, sales exceded 12 billion euros. Nevertheless, Inditex has been affected by by currency changes, given that sales at constant exchange rates increased 8% in the first half of the year.

The gross margin was 6.8 billion euros, an increase of 4% over the first half of 2017 (+10% at constant exchange rates), and represents 56.7% of sales (+30 base points). The direction anticípate an expansion of the gross margin of approximately 50 base points in the second half of 2018.

The operational costs have remained under strict control during the period, as signalled in the note, and have increased 4%, principally as a result of growth in sales and new comercial spaces opened. The operating profits (Ebitda) for the first half is 2.34 billion euros, a 2% increase of the same period last year (+14% at constant exchange rates). Operating income (Ebit) reached 1.78 billion euros, a 2% increase over the same period last year (+17% at constant exchange rates).

At the close of the quarter Inditex had 7,422 stores in 96 markets, 49 of which have already integrated its online sales. The launch of global online sales is in line with the programme foreseen for 2018. Zara lunched online sales in Australia and New Zealand in March 2018. With the aim of making its fashion products available to all its customers anywhere in the world, by 2020 Inditex will offer online sales in all its chains in all the world´s markets.

Inditex paid an ordinary dividend of 1.16 billion euros, o.375 euros per share, on 2 May 2018 on account of the 2017 exercise and will distribute 0.375 euros per share on 2 November as an ordinary complementary or extraordinary dividend.

The textile company´s estimation of sales for the next half year is positive. Inditex estimates comparable sales will increase between 4% and 6% in the second half year of 2018. According to what is signalled in the press note on the results: “The Autumn-Winter collection has been received by our customers.”

Ordinary investment foreseen for 2018 will be around 1.5 billion euros, resulting from the programme of opening new comercial spaces in prime locations. Growth in ordinary investment is expected to remain below the growth in space in the next few years.


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The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.