Spanish clothing company Inditex has announced its sales at €14.8 billion, an increase of 24.5% in the first half (Jan-June’22) of 2022.
Moreover, sales in constant currencies also grew by 25%, the media reported.
In H1 2022, based on the execution of the integrated business model, the gross profit of the company increased by 24.5% to €8.6 billion and the gross margin reached 57.9%, the highest in 7 years.
Based on current information, Inditex expects a stable gross margin (+/-50 bps) for fiscal 2022 (FY22), the company said in its Interim Half Year 2022 Results.
Over H1 2022, Inditex’s traffic and store sales increased markedly and continue to do so, with store differentiation being key to this dynamic.
Online sales progressed satisfactorily and were positive in the second quarter (Q2) of 2022.
The company expects online sales to exceed 30% of total sales by 2024.
However, operating expenses increased by 20% and EBITDA increased by 30% to €4 billion.
The company’s EBIT increased 44% to €2.4 billion and PBT by 42% to €2.3 billion. Its net income increased 41% to €1.8 billion.
Moreover, due to the strong execution of the business model, cash from operations grew significantly. The net cash position grew 15% to €9.2 billion.
The store and online sales in constant currency for the Autumn/Winter collections between August 1 and September 11, 2022, increased 11% versus the recording period in 2021.
At current exchange rates, Inditex expects a 0.5% currency impact on sales in FY22. Sales for the Spring/Summer collections reached €14.8 billion, increasing by 24.5%.
In H1 2022, openings have been carried out in 24 markets. At the end of the period, Inditex operated 6,370 stores.