Financial Data and Key Metrics Changes - The company experienced satisfactory sales growth of 11.1%, reaching EUR25.6 billion, with a net income increase of 32.5% to EUR4.1 billion [3][22][5] - EBITDA grew 13.9% to EUR7.4 billion, and gross profit increased 12.3% to EUR15.2 billion, with a gross margin rise of 67 basis points to 59.4% [5][6][3] - The net cash position improved by 15% to EUR11.5 billion, reflecting strong cash flow generation [24][5] Business Line Data and Key Metrics Changes - Sales growth was robust across all concepts and geographical areas, with a notable 14% increase in store and online sales in constant currency from November 1 to December 11, 2023 [3][20][51] - The company continues to optimize its store designs and has opened new flagship stores in various locations, enhancing customer experience [12][13][28] Market Data and Key Metrics Changes - The company operates in 213 markets with low market penetration, presenting significant global growth opportunities [20][30] - The performance in the US market remains strong, with ongoing expansion and new store openings [61] Company Strategy and Development Direction - The company focuses on maximizing customer appeal, sustainability, and enhancing operational efficiency through a fully integrated business model [19][30] - Initiatives such as the Zara pre-owned platform and the new store design are part of the strategy to drive differentiation and customer engagement [14][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current season's performance and expects continued sales growth, with an anticipated gross margin increase of around 75 basis points for the fiscal year 2023 [23][55] - The company remains committed to its long-term goals, emphasizing creativity, innovation, and quality in its fashion proposition [30][19] Other Important Information - The company has launched a new weekly livestream experience in China to enhance customer engagement, reflecting its commitment to digital integration [29][66] - The company aims to recruit individuals with disabilities to reach a minimum of 2% in its global workforce by the end of 2024 [50] Q&A Session Summary Question: Expectations for growth in 2024 - Management remains focused on the current season and has upgraded gross margin guidance based on strong sales growth [36][37] Question: Impact of foreign exchange on financial results - Management indicated that foreign exchange impacts are non-cash and depend on end-of-quarter exchange rates [40][41] Question: Online participation growth - Online sales have been positive across all concepts, with expectations for continued secular growth [56] Question: Input cost increases due to wage and duty changes - Management acknowledged potential increases in input costs but did not confirm plans to pass these costs onto customers [69] Question: Performance in the Americas amid softer consumer environment - The company reported strong performance in the US market, with ongoing expansion and new store openings [61]

Summary of Inditex H1 2023 Earnings Conference Call Company Overview - **Company**: Industria de Diseño Textil, S.A. (Inditex) - **Date of Call**: September 13, 2023 - **Key Participants**: - Oscar Garcia Maceiras - CEO - Ignacio Fernández - CFO - Marcos López - Capital Markets Director Core Industry Insights - **Industry**: Fashion Retail - **Market Presence**: Operates in 213 markets with low market penetration, indicating significant growth opportunities in a fragmented sector [7][10][26] Financial Performance - **Sales Growth**: - Total sales increased by 15.5% to €16.8 billion, with a constant currency growth of 16.5% [9] - Online and store sales grew by 14% from August 1 to September 11, 2023 [5][27] - **Net Income**: Increased by 40% to €2.5 billion [5][9] - **EBITDA**: Grew by 16% to €4.7 billion [8] - **Gross Margin**: Stable at 58.2%, with expectations of a +/- 50 basis points fluctuation for the fiscal year [10][37] - **Free Cash Flow**: Significant generation, leading to a net cash position of €10.5 billion [9][11] Operational Highlights - **Inventory Management**: Inventory as of July 31, 2023, was 7% lower than the previous year, indicating effective supply chain management [11][41] - **Store Expansion**: Opened stores in 20 different markets, with plans for further expansion [13][26] - **Customer Experience**: Focus on enhancing customer experience through innovative store designs and technology [16][19] Strategic Initiatives - **Sustainability Goals**: - New targets set for 2025 include circular IT services and inclusion of 3 million people in the supply chain [20][21] - Commitment to reduce emissions by over 50% by 2030 and achieve zero net emissions by 2040 [22] - **Fashion Proposition**: Emphasis on creativity and innovation, with successful collections launched [14][15] - **Technological Integration**: Implementation of new security technology in stores and enhancements in online operations [19][55] Market Outlook - **Growth Projections**: Anticipated gross space growth of around 3% in 2023, with positive contributions from existing stores [26][48] - **Long-term Strategy**: Focus on maintaining a differentiated business model and optimizing operations for sustained growth [51] Additional Insights - **Collaborations**: Notable collaborations with prominent talents to enhance fashion offerings [54] - **Online Sales Performance**: Strong growth in online sales, supported by an integrated store and online model [55][56] This summary encapsulates the key points from Inditex's H1 2023 earnings conference call, highlighting the company's robust financial performance, strategic initiatives, and market outlook.

the first and | --- | --- | --- | --- | |------------------------|-------|-------|----------| | | | | | | | | | | | INDITEX | | | | | Interim Half Year 2023 | | | | | 13 September 2023 | | | | | | | | NEW YORK | | | | | | Disclaimer Neither this document nor the information contained herein constitute an offer to sell, exchange or buy, or the solicitation of an offer to buy, to sell or exchange, or any recommendation or advice regarding any securities issued by the Inditex Group. This document may contain s ...

| --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | INDITEX | | | | | | | | | | | | | | | | | | | | | | | | | | | Interim three = months 2023 | | | | | | | | | | | | | | | | | | - 177 June 2023, | the | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Disclaimer this choument and ...

Financial Data and Key Metrics Changes - Inditex reported a sales growth of 13% in the first quarter of 2023, with net income increasing by 54% to €1.17 billion compared to €760 million in the same period last year [4][9] - EBITDA grew 14% to €2.2 billion, reflecting strong operational performance and effective cost management [8] - Gross profit increased by 14% to €4.6 billion, with a gross margin of 60.5% [10][11] Business Line Data and Key Metrics Changes - Sales in constant currency increased by 15%, with strong growth in both stores and online channels [5][10] - The performance was positive across all geographical areas and business concepts, indicating robust execution of the business model [10][14] Market Data and Key Metrics Changes - Inditex operates in 213 markets with low market penetration, providing significant global growth opportunities [6][27] - Sales productivity in stores is expected to increase, with gross space growth estimated at around 3% for 2023 [27] Company Strategy and Development Direction - The company focuses on enhancing its fashion proposition, customer experience, sustainability, and talent development as key strategic pillars [2][3][21] - Inditex is committed to sustainability goals, including partnerships for recycling textile waste and expanding the Zara Pre-Owned platform [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's growth potential, citing strong customer reception of Spring/Summer collections and ongoing expansion efforts [5][30] - The company anticipates stable gross margins and plans to invest approximately €1.6 billion in capital expenditures for 2023 [28] Other Important Information - Inditex's net cash position grew to €10.5 billion, supported by significant free cash flow generation [9][13] - The Board of Directors proposed a dividend of €1.2 per share for 2022, with payments scheduled for May and November 2023 [29] Q&A Session Summary Question: Future view of space growth - Management expects 3% gross space growth for the year, emphasizing the importance of space productivity over mere expansion [31][33] Question: Strongest performing product areas at Zara - All product areas are performing well, driven by creativity and execution across all channels and geographies [37][39] Question: Insights on gross margin performance - The strong gross margin is attributed to effective execution and sales growth, despite external factors like currency fluctuations [41][43] Question: Financial income outlook - Positive financial income is expected to continue, reflecting improved treasury yields [45][46] Question: New security technology impact - The new technology to eliminate hard tags is expected to enhance customer experience and will be rolled out across all formats [48][50] Question: Growth performance in Spain - Positive performance in Spain is noted, with ongoing projects to enhance store presence in prime locations [52][54] Question: Growth ambitions in China and the U.S. - Management sees significant growth opportunities in both markets, with strong demand for fashion in China and selective growth in the U.S. [55] Question: Overall growth strategy - The focus remains on strengthening the integrated business model and leveraging the talent and commitment of employees to drive performance [56][58]

Industria de Diseno Textil S.A. (OTCPK:IDEXY) Q4 2022 Results Conference Call March 15, 2023 4:00 AM ET Company Participants Marcos López - Capital Markets Director Oscar Garcia Maceiras - CEO & Executive Director Ignacio Izuzquiza Fernández - CFO James O’Shaughnessy - Senior IR Manager Conference Call Participants James Grzinic - Jefferies Richard Chamberlain - RBC Sreedhar Mahamkali - UBS Nick Coulter - Citi Warwick Okines - Exane BNP Rebecca McClellan - Santander Georgina Johanan - JPMorgan Anne Critchlo ...

Industria de Diseño Textil, S.A. (OTCPK:IDEXY) Q3 2022 Results Conference Call December 14, 2022 3:00 AM ET Company Participants James O'Shaughnessy - Senior IR Manager Marcos López - Capital Markets Director Oscar GarcÃa Maceiras - CEO Ignacio Fernández - CFO Conference Call Participants Anne Critchlow - Societe Generale Rebecca McClellan - Santander Richard Chamberlain - RBC Paul Rossington - HSBC Georgina Johanan - JP Morgan Warwick Okines - Exane BNP Paribas Nick Coulter - Barclays Marcos López [Foreign ...

Industria de Diseño Textil S.A (OTCPK:IDEXY) Q2 2022 Results Conference Call September 14, 2022 3:00 AM ET Â Company Participants Marcos López - Capital Markets Director Oscar Garcia Maceiras - CEO Ignacio Fernández - CFO James OÂ'Shaughnessy - Senior IR Manager Conference Call Participants Anne Critchlow - Societe Generale Richard Chamberlain - RBC Warwick Okines - BNP Paribas Exane James Grzinic - Jefferies Nick Coulter - Citigroup Adam Cochrane - Deutsche Bank Rebecca McClellan - Santander Georgina Johan ...

Financial Data and Key Metrics Changes - In Q1 2022, sales reached €6.7 billion, a 36% increase compared to Q1 2021 [10][19] - Net income rose 80% to €760 million, with a potential net income of €940 million excluding provisions [12][19] - Gross margin improved to 60.1%, marking the highest first-quarter gross margin in 10 years [20][21] - The net cash position increased to €9.2 billion, supported by significant free cash flow generation [8][23] Business Line Data and Key Metrics Changes - Store sales saw a significant rebound, with strong performance across all business lines, particularly Zara, Stradivarius, Pull&Bear, and Bershka [25] - Inventory grew by 27%, reflecting both volume growth and price adjustments due to supply chain considerations [22][50] Market Data and Key Metrics Changes - The US market continued to show robust growth, becoming the second-largest market for the company after Spain [40] - Store traffic rebounded significantly, contributing to the overall sales growth [20][41] Company Strategy and Development Direction - The company emphasizes a fully integrated business model that combines physical stores and online sales, aiming for online sales to exceed 30% of total sales by 2024 [31] - Sustainability and digitalization are core strategic priorities, with ongoing investments in innovative technologies and sustainable practices [30][62] - The company plans to maintain a predictable and attractive dividend policy, with a capital expenditure of €1.1 billion for 2022 to drive growth [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's unique business model and its ability to adapt to changing market conditions [9][30] - The strong performance in Q1 2022 is expected to continue, with positive trends in store traffic and sales [20][34] Other Important Information - An extraordinary charge of €216 million was taken to provision for expected expenses related to the Russian Federation and Ukraine [11][19] - The company has partnered with Infinited Fiber Company to promote textile circularity, committing over €100 million for future production [26][27] Q&A Session Summary Question: US market profitability - The US market is performing strongly, with sales up 36%, and is now the second-largest market for the company [40][41] Question: Footfall compared to pre-pandemic levels - Store traffic has rebounded significantly, showing positive trends compared to 2019 levels [43][46] Question: Inventory growth drivers - The 27% inventory growth is attributed to high-quality inventory management and proactive shipment strategies [49][50] Question: Russian provisions details - The €216 million provision reflects expected expenses and is currently a non-cash provision [53] Question: Volume response to pricing adjustments - The company maintains a stable pricing policy, with selective adjustments in response to inflation, expecting no significant impact on volumes [56] Question: Returns management and efficiency - The introduction of return charges in various markets has not negatively impacted sales and has improved return management efficiency [59][61] Question: Sustainability initiatives - The company is committed to sustainability, with ongoing partnerships and projects aimed at reducing the environmental footprint [62]

Financial Data and Key Metrics Changes - In 2021, sales in constant currency were 3% higher than pre-COVID 2019 levels, with net income reaching €3.2 billion, up 193% compared to 2020 [8][9][20] - The gross margin reached 57.1%, the highest in six years, with a stable outlook for 2022 expected to be within ±50 basis points [20][42] - Free cash flow accelerated, with net cash at €9.4 billion at year-end, and cash from operations was €5.1 billion [10][24][106] Business Line Data and Key Metrics Changes - Online sales grew 14% compared to 2020, reaching €7.5 billion, accounting for 25.5% of group sales [8][10] - Store sales improved significantly, with a 36% recovery over 2020, and the store optimization program was deemed a success [13][28] - All business concepts achieved profit before tax as a percentage of sales exceeding 15% in 2021 [27] Market Data and Key Metrics Changes - The United States became the largest single market for Inditex after Spain, reflecting strong sales performance [20][93] - Sales performance in 2021 was impacted by COVID-19 restrictions, particularly in the fourth quarter due to the Omicron variant [15][17] - Sales from the Russian Federation and Ukraine contributed approximately 5 percentage points to sales growth in early 2022 [16][62] Company Strategy and Development Direction - Inditex is focused on a fully integrated digital and sustainable business model, emphasizing the importance of online and store integration [5][40] - The company aims to increase the differentiation of its business model to enhance customer experience, with sustainability and digitalization at the core of its strategy [42][43] - Capital expenditure for 2022 is projected at €1.1 billion to drive differentiation, digitalization, and sustainability [45] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's resilience, noting a strong start to 2022 with sales significantly above 2021 and pre-COVID levels [47][98] - The company remains committed to a predictable and attractive dividend policy, proposing a dividend of €0.93 per share, a 33% increase from 2021 [7][46] - Management acknowledged the challenges posed by the Omicron variant but indicated a return to positive sales patterns as restrictions eased [16][19] Other Important Information - Inditex has made significant progress in sustainability, with 91% of its facilities using renewable energy and 42% of fibers used being more sustainable [32][36] - The company is working with over 145 start-up companies to drive innovation in sustainability [35] Q&A Session Summary Question: Gross margin guidance and cost inflation impact - Management expects gross margin to remain broadly stable, with mid-single-digit price increases planned to offset cost inflation [54][57] Question: Impact of Russia store closures on EBIT - Management indicated that the impact of store closures in Russia would not be material, with a focus on supporting staff [62][88] Question: Confidence in passing through price increases - Management stated that the mid-single-digit price increases have been implemented without negatively impacting sales volume [65][71] Question: Online sales decline in Q4 - Management explained that the decline was due to a high comparative base from the previous year and additional costs from online operations during Omicron [73][74] Question: Update on China and supply chain constraints - Management preferred not to comment on short-term impacts but noted strong trading updates overall [93][98]