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Inditex Swings To Profit In Q1, Sales Up 50%

Inditex (IDEXF.PK) reported a turnaround to profit for the first quarter, led by a 50% growth in Q1 sales, with May sales above 2019 levels.

Net income for the quarter was €421 million compared to a loss of €409 million incurred a year ago.

The company's Q1 sales surged 50% to €4.9 billion from €3.3 billion last year, reflecting higher sales across all geographies and every brand despite the fact that 24% of trading hours were unavailable due to lockdowns and restrictions, in addition to other capacity restrictions.

In local currencies, revenue was just 11.5% below the level of the first quarter of 2019. Online sales in local currencies grew by 67%.

Gross margin expanded to a robust 59.9%, thanks to the implementation of the business model and the efficiencies unlocked by the digital transformation strategy

The Group's net cash reached €7.2 billion at the reporting period, up 25% from a year earlier, and the highest in a first quarter.

Inditex's executive chairman, Pablo Isla, said, "...our differentiation and strategic transformation towards a fully integrated, digital and sustainable model continues to bear results, supported by the commitment displayed by all the people who work at Inditex."

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