IDEXY - Inditex stock rallies on signal of strong sales into the summer
2023-06-07 11:08:39 ET
Zara-parent Industria de Diseño Textil, S.A. ( OTCPK:IDEXY ) gained sharply on Wednesday after offering a strong Q1 earnings update and an optimistic outlook on the current quarter.
For the quarter reported, the Spanish retailer reported 15% sales growth in constant currency and 14% in gross profits and EBITDA. Net income surged over 50% from the prior year quarter while inventory growth slowed to 5% year over year.
“We have had a very satisfactory sales growth of 13%. The execution of the business model has also been very robust with a healthy gross margin and disciplined cost management. On the bottom line, net income increased 54% to €1.17B,” CEO Oscar Garcia Maceiras told analysts on Wednesday. “The performance has continued in the second quarter. Store and online sales in constant currencies between the 1st of May and 4th of June grew 16%.”
He added that the spring/summer offerings have been “very well received by customers” and bolsters confidence in continued sales growth ahead. Gross margins are expected to remain largely stable year over year.
Shares of Inditex ( OTCPK:IDEXY ) rose 5.34% on Wednesday.
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Inditex stock rallies on signal of strong sales into the summer