illustrated a healthy execution of the business model. The gross margin reached 60.6%. Based on current information we expect a stable gross margin of plus-minus 50 basis points this financial year. There has been very tight control of operating expenses across all departments and business areas. Thank you. On the back of the comments made by Ignacio, I would like to reiterate that the performance of the first quarter 2024 has been remarkable. We are very content with the execution over the period. We have ...

Financial Data and Key Metrics Changes - Net income increased by 30% to €5.4 billion, with EBITDA growing by 13.9% to €9.8 billion [3][12][13] - Sales grew by 10.4% to €35.9 billion, with a 14.1% increase in constant currency [11][13] - Gross profit rose by 11.9% to €20.8 billion, and the gross margin reached 57.8% [15][20] - Free cash flow generation led to a net cash position of €11.4 billion, up 15.3% [17] Business Line Data and Key Metrics Changes - Store and online sales both contributed to the strong sales growth, with online sales increasing by 16% and store sales by 8% [75][86] - The company opened stores in 41 markets and optimized activities across all concepts, with Zara performing particularly well [19][21] Market Data and Key Metrics Changes - Inditex operates in 213 markets with low market share in a highly fragmented sector, indicating strong global growth opportunities [9][57] - Sales growth was positive across all regions and concepts, with expectations of a 1.5% currency impact on sales in 2024 [14][66] Company Strategy and Development Direction - The company plans to invest €1.8 billion in ordinary capital expenditure in 2024, focusing on optimizing commercial space and improving online platforms [5][58] - A logistic expansion plan for 2024/2025 involves an extraordinary investment of €900 million each year to enhance logistics capacities [10][38] - Sustainability remains a key part of the strategy, with initiatives like the Zara pre-owned platform and collaborations with startups for sustainable materials [24][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's potential, emphasizing the importance of creativity, innovation, and customer experience [33][34] - The company sees significant long-term growth opportunities in the U.S. and plans to expand its presence with new store openings [35][42] Other Important Information - A proposed dividend increase of 28% to €1.54 per share reflects the strong sales performance [8][39] - The company aims to achieve 100% sustainable fibers by 2030, highlighting its commitment to sustainability [88] Q&A Session Summary Question: What kind of space conversion rate to sales do you expect from the 5% gross space growth? - The company expects a positive space contribution to sales, with historical averages around 75% to 80% [40][61] Question: Can you provide an update on progress in the U.S.? - The U.S. remains a core market with significant opportunities for growth, including new store openings and enhancements to online operations [62][64] Question: Can you expand on the logistics investments? - The €900 million annual investment aims to enhance logistics capabilities, supporting profitable growth in the medium to long term [66][67] Question: What about margin expansion in non-Zara concepts? - All concepts share the same flexible business model, contributing to positive sales growth across all key geographies [68][69] Question: Will the returns profile dilute due to upcoming investments? - The company aims to invest ahead of the cycle to capture growth opportunities, maintaining a strong performance with double-digit sales growth [70][71] Question: Can you detail the €1.8 billion ordinary CapEx? - The CapEx will focus on store optimization, with significant activities including openings, refurbishments, and enlargements [72][83]

Inditex, the parent company of Zara, reported record sales for the fiscal year 2023, with revenues reaching €36 billion (£31 billion), a 10.4% increase from the previous year.  Net income for Spain’s largest company grew 30.3% to €5.38 billion, demonstrating the “effectiveness of our integrated store and online strategy”, according to the group. Inditex announced a 28% increase in its full-year dividend to €1.54 per share . The group noted a positive start to 2024, with sales growing 11% in constant currenc ...

Shopper carrying two large shopping bags from the clothing retailer Zara on Oxford Street on 5th February 2024 in London, United Kingdom. Oxford Street is a major retail centre in the West End of the capital and is Europes busiest shopping street with around half a million daily visitors to its approximately 300 shops, the majority of which are fashion and high street clothing stores. (photo by Mike Kemp/In Pictures via Getty Images)Shares of Zara owner Inditex hit record highs on Wednesday according to LSE ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks ...

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]