Resilient growth and margins, reasonable valuation, sustained cash generation: Buy Inditex (T.P. 27,5 euros/share)

Bankinter | Inditex’s Q3’22 results (August-October) met expectations. Sales were up 11% vs expected 9%. Despite some deterioration in a difficult context, margins are holding up at levels close to historic highs (M. EBIT 21.3% vs 21.7% in Q3’21). The Q4 kickoff, which includes the Christmas season (on average 30% of annual sales), is good. In the first 5 weeks (from November 1 to December 8) sales grew 12%, gaining…


Inditex is exploring the sale of its Russian business to an Asian partner

Bankinter | According to the Russian media, Inditex will transfer its assets there to partners in a “friendly” country in Soutb East Asia or the Persian Gulf. The solution would include Massimo Dutti, Oysho and Zara Home leaving the Russian market completely. Meanwhile other brands, particularly Zara, would operate under other names and with new collections from spring of 2023. It could take six months to a year to finalise…

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Inditex Smashes Sales And Earnings Records: €1,794 mn (+41%)

Inditex (ITX) published on Wednesday its results for the first half of the 2022 fiscal year (since February 1 to July 31) with sales, EBITDA and net profit reaching record highs. Net profit for the period increased 41% to 1.794 billion. Revenues amounted to 14.845 bn (+24.5%). Sales at constant exchange rates grew by 25%. The company underlined that sales were positive in all geographic areas. The consolidated result (Ebitda)…


Inditex: recent progress encourages a recovery of confidence unblocking the stock in the short-term

CdM |Inditex (ITX)’s first quarter results released on Wednesday beat expectations; the net profit figure reflects the provision for the suspension of activity in Russia and the Ukraine. Main figures compared with Bloomberg consensus: Sales 6.742 billion euros (+36.4%) vs 6.237 billion expected. Gross Margin 4.054 billion euros (+36.9%) vs 3.713 billion (e). This means a margin of 60.1% vs 59.9% in Q1 2021 and 59.5% expected. EBITDA 1.917 billion…

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Inditex: a resilient model, but increasing risks and lack of visibility are blocking the stock short-term despite comfortable multiples

Bankinter | Inditex’s 2021 results (closed at 31 January 2022) have not met expectations and the outlook is deteriorating. The model is showing resilience, with strong cash flow generation. However, forecasts for 2022 are getting complicated. On the revenues side: activites in Russia and Ukraine suspended (9% of stores), outbreaks of Covid-19 in China (5% of stores) and the deterioration in confidence and purchasing power of consumers in Europe and…


Inditex posts 2021 profits of €3.243 Bn, up 193% vs 2020

Inditex posted net profit of 3.243 billion euros in its fiscal year 2021, up 193% from a year earlier, when its earnings were hit by the Covid-19 pandemic. The figure was still 11% below the 3.639 billion euros recorded in 2019. Total sales at the Zara owner rose 36% to 27.716 billion euros year-on-year, while online sales increased by 14% to 7.5 billion euros, 25.5% of the total in 2021….

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Inditex: Record Sales With 11% Fewer Shops

Inditex’s (ITX) net profit for the first nine months of its fiscal year (1 February 2021 to 31 October 2021) rose 273% to 2.5 billion euros. In the watertight third quarter, the textile company said sales, profit before tax and net profit reached an all-time high. During the third quarter of 2021, sales growth at constant exchange rates progressively accelerated to 21% compared to the third quarter of 2020 and…

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Marta Ortega Replaces Pablo Isla As Chairman Of Inditex

The Board of Directors of Inditex, at the initiative of its Chairman Pablo Isla and founder Amancio Ortega, and following the proposal of the Nomination Committee, has approved the appointment of Marta Ortega Pérez as Chairman of the Group. She will be a proprietary director, an appointment that will be effective as from 1 April 2022. On the other hand, Óscar García Maceiras, until now Secretary General and Secretary of…


Inditex’s Owner Enters Renewables Business In Partnership With Repsol

The Spanish oil company has announced an agreement with Pontegadea, Amancio Ortega’s investment company, to partner in its first operational wind farm in Spain, representing the investment group’ first renewables deal. Specifically, Pontegadea will invest 245 million euros to take 49% of the Delta wind farm, valued at 500 million, a project with an installed capacity of 335 MW located in the province of Zaragoza (Spain). The remaining 51% of…


Inditex Sells 9% More Than In H1 2019

Link Securities | Inditex (ITX) has presented its results for the first half of its fiscal year (H1 2021), which runs from February to July, achieving record sales, EBITDA and profits. Revenues came in at €11.936 billion, 49% higher than in H1 2020, and in line (-0.3%) with the figure expected by FactSet’s analysts’ consensus. At constant exchange rates revenues grew by 53%. Online sales at constant exchange rates rose…