Inditex SA (IDEXF.PK), a Spanish clothing firm, on Wednesday reported that its first-quarter net income increased 54 percent to 1.2 billion euros from last year’s 760 million euros.
The prior year results reflected a provision for expected expenses in the Russian Federation and Ukraine of 216 million euros.
Profit before tax grew 52 percent to 1.5 billion euros, and EBIT increased 43 percent year-over-year to 1.5 billion euros. EBITDA increased 14 percent to 2.2 billion euros.
The gross margin reached 60.5 percent, 34 basis points higher than last year.
Sales grew 13 percent from the prior year to 7.6 billion euros, with good development both in stores and online. Sales were positive in all geographical areas and in all concepts. Sales in constant currency grew 15 percent.
Further, Inditex’s Board of Directors will propose to the Annual General Meeting a dividend for fiscal 2022 of 1.20 euros. The dividend is composed of two equal payments of 0.60 euro per share. The first interim payment was made on May 2 and the final dividend payment will be made on November 2.
Looking ahead, Inditex said it continues to see strong growth opportunities. Store and online sales in constant currency between May 1 and June 4 increased 16 percent versus the same period in 2022.
For fiscal 2023, at current exchange rates, Inditex expects a negative 2.5 percent currency impact on sales. The company expects a stable gross margin, plus or minus 50 basis points.
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