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…
Inditex (ITX) today holds its Annual General Meeting of Shareholders where, amongst other matters, it will approve the payment of a gross dividend of 0.70 euros per share. This will be divided into an ordinary dividend of 0.22 euros gross per share and an extraordinary dividend of 0.48 euros gross per share. On the occasion of the AGM, in an interview with the newspaper Expansión, Inditex Chairman, Pablo Isla, gave…
Inditex earned 421 million euros in the first quarter of its fiscal year (1 February to 30 April) compared to a loss of 409 million euros a year earlier. The company’s sales were 4.942 billion euros, up 50% from 3.303 billion euros in the first quarter of 2020. Online sales at constant exchange rates grew by 67%. Key figures compared to Bloomberg consensus: Sales €4.942bn (+49.6%) vs €4.880bn (+47.7%) expected….
T.C. | The world leader in the textile sector, Inditex, today announced its foray into the world of cosmetics from Wednesday 12 May, with the launch of a new cosmetics line, Zara Beauty. It “will be integrated as another section and will be available online in all European markets, USA, Canada, China, South Korea, Japan, Mexico, Australia and New Zealand.” Later, it will be incorporated in all countries and have…
Inditex’s results in the year of the pandemic have shown an annual drop in profit and revenues of 70% and 28%, respectively, although the counterpart for the company has been the rapid conversion of its business model to the online environment, with internet sales growing by 77%. On the other hand, Inditex’s Board of Directors will propose a €0.70 per-share dividend at the Annual General Meeting scheduled for July. It will consist of an ordinary dividend of €0.22 and an extraordinary dividend of €0.48 per share.
Inditex has seen a “rapid recovery” in the second half of its fiscal year 2020-2021, after returning to profits of 214 million euros in this period (between 1 May and 31 July), and leaving behind the loss of 409 million euros in the first three months. Sales recovered from -44% in the first quarter to -31% in the second quarter, despite as many as 87% of the Group’s stores still being closed in May. Today, 98% of Inditex’s stores are open, with restrictions still in place in some specific markets.
Alphavalue Research | The industry is still a question mark: the shift to online purchases, to what extent buyers will need to see, touch and feel a product before making up ones’ mind. However with a 15% upside potential, the sector is nearly at acceptable prices. This is entirely due to Inditex (27% upside) and M&S (25% upside but best avoided). The fact that Zalando or Next do not trade wildly above their target prices may also indicate that a Buy window has opened. Time to dip a toe again.
Inditex has published results for its first fiscal quarter (February-April), reflecting as expected the strong impact of the coronavirus: historical losses of €409 million, positive EBITDA although 78% lower than in Q1’19, and a 44% drop in revenues. Nevertheless, the company confirmed the payment of a dividend against 2019 results of 0.35 euros/share, 60% less than a year earlier.
Inditex has decided to postpone its temporary layoffs’ plan, which was expected to start on 15 April. For the time being, it will continue paying the salaries of its workers in Spain. After the state of alarm was decreed on 14 March and just after presenting its results, Inditex already flagged that it was going to cover the cost of all its staff in Spain. At the same time, it conditioned the temporary layoffs for its 25,000 store employees to the extension of the decree beyond 15 April, a measure which is now ruled out.
Inditex recorded net income of 3.63 billion euros in the fiscal year 2019-2020 (from 1 February 2019 to 31 January 2020), a rise of 6% compared to a year earlier. This was after making a 287 million euros provision in the Gross Margin to adjust the estimated value of the spring/summer campaign’s inventory affected by the Covid pandemic. Without this impact, its Gross Margin would have amounted to 16.09 billion euros, 56.9% of sales.