Inditex earns 1,272 million euros in the first half and leaves the Covid crisis behind

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Inditex it strengthens the recovery and puts the pandemic aside. In the first half of 2020 (February-July) it has obtained a net profit of 1,272 million euros compared to the losses of 195 million euros registered in the same period of the previous year, very marked by the effects of Covid.

Although the best data is that closed its second best quarter in history by invoicing a total of 6,994 million euros between May and July, 48% more than a year ago and 1.2% more than in 2019. Along the same lines, the profit for the second quarter in 2021 reaches 850 million euros and exceeds the previous bar for 2019, as reported in a statement sent to the National Securities Market Commission (CNMV).

In the first semester, sales stood at 11,936 million euros, 49% higher to those of the same period of the previous year. Sales at constant exchange rates grew 53%.

At current exchange rates, the Group estimates a currency impact on sales for the second half of the year of around + 0.5% compared to 2020 and -5.5% compared to 2019.

The gross margin stood at 6,907 million euros, 53% higher than in the first half, and represents 57.9% of sales (+170 bp). Based on the information available, Inditex expects a gross margin of around 57.5% (+/- 50 bp) for fiscal year 2021.

For its part, Ebitda grew 109% to 3,101 million euros and Ebit reached 1,685 million euros (-198 million euros in the first half of 2020).

The president of Inditex, Pablo Isla, has stated that the good results are “the result of the commitment of all the people who make up the company to offer the highest creative quality in fashion. Thanks to all of them, we are making the most of the benefits of sustainable strategic transformation in our business model ”.

Online sales’

In-store and online sales at constant exchange rates between August 1 and September 9, 2021 grew by 22% compared to the same period in 2020 and 9% compared to the same period in 2019.

During the semester, store sales have continued to improve. Online sales continue to grow strongly. Online sales at constant exchange rates have grown 36% compared to the same period of the previous year and 137% compared to 2019. Inditex expects online sales to exceed 25% of total sales in 2021.

Inditex continues to be very active in differentiating its commercial space. The growth of the acreage in the first semester is in line with the expectations of the management. Openings were made in 27 markets.

As part of Inditex’s strategy, Uterqüe will be fully integrated into Massimo Dutti over the next year. The entire range of Uterqüe products will be available only through Massimo Dutti on its website and in selected stores.

The execution of the investment plan announced for the period 2020-2022, of 1,000 million euros allocated to digitization and 1,700 million euros to the integrated store and online platform, continues apace, according to the group founded by Amancio Ortega. At the end of the semester, the group had 6,654 stores, after the opening of 92 new stores in 27 markets around the world.

With respect to the beginning of the second semester, in the period between August 1 and September 9, 2021, sales in stores and online at constant exchange rates grew by 22% compared to the same period in 2020 and by 9% compared to 2019.

The final dividend for fiscal year 2020 (0.35 euros per share) will be paid on November 2, 2021.

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