A client carries two large bags from clothing retailer Zara on Oxford Street in London, Britain on February 5, 2024.
Mike Kemp | In pictures | Getty Images
Shares of Zara owner Inditex hit record highs on Wednesday, rising over 6% in intraday trading after the corporate reported its full-year 2023 results, in response to LSEG data Results.
At 11:50 a.m. London time, the share price was just over 6% higher at 43.58 euros, or $47.69.
The company announced that sales rose by 10.4% to 35.9 billion euros over the course of the 12 months, signaling that this was a record figure. Sales increased across all Inditex geographic regions and types and were “very satisfactory” each online and in-store, the corporate said.
A complete of 5,692 stores were in operation at the tip of the 12 months, Inditex said, adding that further expansion is planned in 2024, including with Zara stores in Los Angeles and Las Vegas. The company also plans to open recent distribution centers in 2024 and 2025 as a part of a comprehensive logistics expansion plan that can cost the corporate €900 million in investments in each years.
Net profit also reached a brand new high, having risen by 30.3% from 2022 to five.4 billion euros last 12 months. The company’s gross profit amounted to twenty.8 billion euros, a rise of 11.9% in comparison with the previous 12 months.
“Inditex’s performance in 2023 was outstanding. Our teams were able to take advantage of the opportunities to continue to grow profitably. We are investing to drive future growth and continue to provide attractive compensation to shareholders,” said Oscar García Maceiras, CEO of Inditex in a press release.
The Spanish clothing company owns quite a lot of hugely popular brands, including household name Zara, in addition to Pull & Bear, Bershka, Stradivarius, premium retailer Massimo Dutti, in addition to Sport and athleisure-focused Oysho.
Zara, including the Zara Home range, was the biggest contributor to sales in 2023, followed by Pull & Bear and Massimo Dutti, Inditex said on Wednesday.
The company also noted that 2024 got off to a very good start, with sales increasing 11% in constant currency in the course of the period from February 1 to March 11 in comparison with the identical period last 12 months.
