Inditex YTD net profits rise 24% YOY

Zara parent company Inditex has reported a rise in net profits for the nine months ended 31 October, with increased prices helping to offset weakened global demand for clothing.

Inditex said on Wednesday that Zara's store and online sales had risen 19% year-on-year to €23.1bn, slightly faster than expected by analysts, despite the group moving to hike prices by 5% or more since the start of spring in order to offset mounting costs.

The Spanish company said net income in the February to October period had grown 24% to €3.1bn in 2022, up from €2.5bn a year ago. Gross profits increased 19% to €13.5bn and gross margins came in at 58.7%.

Sales increased 11% during the third quarter, reflecting a weakening consumer environment, but stated that sales between the start of November and 8 December had increased 12% year-on-year.

As of 0910 GMT, Inditex shares were up 1.01% at €25.01 each.

Reporting by Iain Gilbert at Sharecast.com