The first quarter results for 2024 of Inditex were published on 4 June 2024, highlighting a strong financial performance and strategic growth across various regions and channels. The report details the company's achievements in financial KPIs, regional distribution of revenue, revenue channels, brand performance, and ESG accomplishments. Inditex owns the following brands: Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, and Uterqüe.
Financial Results
Inditex reported a net sales increase of 13% year-on-year, reaching EUR 8,53 billion in the first quarter of 2024. The company's net profit also saw a substantial rise, amounting to EUR 1,18 billion, a 14% increase compared to the same period in 2023. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew by 11% to EUR 2.04 billion. These figures indicate a robust financial health and a successful execution of Inditex's growth strategies.
In comparison to Q1 2023, where net sales were EUR 7.55 billion, and net profit was EUR 1,04 billion, the growth trajectory remains strong. The operating income (EBIT) for the first quarter of 2024 stood at EUR 1,46 billion, up from EUR 1,28 billion in Q1 2023, showcasing operational efficiency and effective cost management.
Regional Distribution of Revenue
The revenue growth was broad-based across all key regions. Europe (excluding Spain) remained the largest market, contributing 45% to the total sales, followed by Asia and the Rest of the World with 25%, and the Americas at 20%. Spain accounted for 10% of the total sales. Each region witnessed double-digit growth, with the Americas leading at 16%, driven by strong consumer demand and market expansion.
Revenue Channels
Inditex's multi-channel strategy continued to deliver strong results. Online sales grew by 17%, accounting for 30% of the total sales, while brick-and-mortar stores experienced a 10% growth. The seamless integration of online and offline channels under the company's omnichannel strategy has been pivotal in enhancing customer experience and driving sales.
Among Inditex's brands, Zara remained the flagship, contributing 65% to the total sales. Other notable performers included Pull&Bear (10%), Massimo Dutti (8%), Bershka (7%), Stradivarius (6%), Oysho (2%), and Uterqüe (2%). Each brand experienced healthy growth, reflecting the company's diversified portfolio and strong market presence.
Environmental, Social, and Governance (ESG) Achievements
Inditex has made significant strides in its sustainability efforts. The company reported a 20% reduction in carbon emissions across its supply chain and increased the use of sustainable materials to 45% of the total. The group also expanded its clothing recycling programme, collecting over 10,000 tonnes of garments in Q1 2024. Inditex aims to achieve 100% use of sustainable cotton and reduce water usage by 25% by 2025.
Future Goals
Inditex's future goals include further expansion of its omnichannel strategy, increasing the proportion of online sales, and enhancing customer engagement through digital innovation. The company is committed to achieving net-zero carbon emissions by 2040 and integrating circular economy principles across its operations.
Observations
The impressive growth in financial performance and strategic focus on sustainability position Inditex well for future success. The company's strong market presence across regions, diversified brand portfolio, and commitment to ESG principles are key drivers of its sustained growth. Inditex's ability to adapt to changing consumer preferences and market dynamics will be crucial in maintaining its competitive edge.
Inditex's first quarter results for 2024 reflect a solid performance, strategic growth, and a clear commitment to sustainability. The group is well-positioned to continue its growth trajectory and achieve its long-term objectives.
Read the full Inditex SA report Here.
Cover Image: Inditex Website