The third quarter of Inditex’s fiscal year showed a net profit of €1,831 million, representing a 9% increase compared to the same period of the previous year. As the company itself reported and detailed in the media, this improvement in the quarterly result responds to a combination of factors: a recovery in sales, effective control of expenses, and strengthening operating margins. The textile group ended October with an accumulated net profit of €4,622 million throughout the first nine months of its financial year, representing an increase of 3.9% compared to the same previous period.
According to information revealed by Inditex and collected by various media outlets, sales between February and October increased by 2.7%, reaching 28.171 million euros. The company’s gross profit margin reached $16,811 million, an annual increase of 3.2%, equivalent to 59.7% of accumulated sales. The company indicated that this positive development came as a result of a strategy that focused on containing costs and the good reception of its latest collections, aspects that had a decisive impact on the company’s financial path during this period.
An analysis of the quarterly development of the company’s operating margins shows that gross profit in the months from August to October saw an increase of 6.2% to 6,108 million euros, representing 62.2% of the quarter’s sales. The margin improved by 79 basis points compared to the previous year. As reported by the company and reported by the media, Inditex’s operating behavior has shown strength even in the face of currency fluctuations and global economic instability.
Inditex confirmed in its financial report that the consolidation of these results comes not only from increased sales, but also from strict control of expenses. Between February and October, expenses increased by 2.4%, a variance that remained 29 basis points smaller than the increase in income. This moderation allowed for increased operational efficiency and improved company resources throughout the year.
The development in terms of nominal value of sales in the quarter from August to October amounted to 4.9% compared to the same period last year, reaching 9,814 million euros. Considering the fixed exchange rate, the growth rate rose to 8.4%, a result that exceeded the averages of previous quarters, as detailed by Inditex and reported by the media. The group stressed that this dynamism demonstrates the company’s ability to adapt and strengthens its position in international markets in the face of currency fluctuations and other macroeconomic challenges.
Regarding operating numbers, the result before depreciation (Ebitda) in the first nine months of the financial year amounted to 8,303 million euros, a figure that represents a growth of 4.2% compared to the same period of the previous year. Net operating results (Ebit) were $5,943 million, representing an increase of 4.8% year over year. For its part, profits before taxes rose to 5,964 million, or 3.6% over the previous year. According to data published by Inditex and published by specialized media, the company was able to improve most of its financial indicators.
Inditex’s net cash position at the end of October amounted to 11,268 million euros, slightly lower than the 11,824 million euros recorded in the same month of the previous year, according to media. However, the company highlighted that the strong cash flow generated during this period allowed it to maintain financial and operational stability, despite the context of international expansion and the challenging economic environment.
In its report, Inditex attributed these results to the positive impact of demand for its latest collections, which contributed to maintaining the sales rate and improving economic results in various markets. In this sense, the textile group has repeatedly emphasized that the balance between increasing business volume and containing costs was the basis of its international competitiveness, according to the media. The progress in operating margins was largely supported by effective management of cost structures, which facilitated margin expansion and strengthened the company’s position in the segment.
According to information issued by the company and included in its financial report, the upward trend in income and profitability reflects Inditex’s ability to identify and take advantage of business opportunities amid a volatile economic environment. The figures show that the expansion strategy, positive consumer response to the product lines and strict resource management were crucial in maintaining the growth achieved in the first nine months of the financial year.
The continued flow of income, coupled with the gradual improvement of key financial results, supports Inditex’s consolidation in the international textile sector. According to the media, the company was able to maintain positive dynamics in various geographical markets despite exchange rate fluctuations and difficulties associated with the global economy, which confirms the solidity of the company’s strategy published in the last fiscal year.