Inditex Continues To See Growth In Cold Winter

The world's largest apparel retailer, Inditex SA (ITX.MC), recently disclosed that net sales of 12 billion 700 million euros in the first nine months of the fiscal year were slightly higher than the 12 billion 600 million euro forecast, an increase of 6.6% over the previous year, of which the comparable increase in stores and online sales reached 10.5% on the local exchange rate, and entered the first quarter of November and the first week of December in the four quarter. With the normal weather in Europe, the comparable growth of stores and online sales increased to 14% at local exchange rates. The data stimulated Inditex SA (ITX.MC) shares up to 4.3% on Thursday.

Net profit in the first nine months was 1 billion 686 million euros, up 0.7% from 1 billion 674 million last year, which is in line with market expectations.

Core earnings EBITDA increased by 1.8% to 2 billion 825 million euros per year, and the market forecast was 2 billion 800 million euros, 2 billion 776 million euros in the same period last year, and the EBITDA profit margin decreased by 100 basis points to 22.2% due to the depreciation of currencies such as rouble and Japanese yen and changes in accounting standards.

Gross margin also decreased by 100 basis points, from 59.9% in the same period last year to 58.9%.

In the period, it has Pull, Bear, Bershka, Massimo Dutti and Oysho brands. The group has added 230 stores, bringing the number of shops in 88 countries to 6570, about 72% of which are located.

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Societe Generale SA (SOGN.PA) Anne Critcholow, an analyst at Xing Xing bank, pointed out that Inditex SA (ITX.MC) has achieved substantial growth in the first nine months. She expects that the group will continue to be strong in the next few months after two consecutive years of downturn.

Bernstein analyst Jamie Merriman said Inditex SA (ITX.MC) showed a quick response to weather conditions and other negative conditions, which fully demonstrated the advantages of its business model, and the first five weeks of the fourth quarter were a good start for the Christmas season.

To the deadline,

An increase of 3.65% to 23.17 euros has narrowed its 2014 share price to 3.8% so far, while its biggest competitor, H&M Hennes & Mauritz AB (HMb.ST), has gained 6.6% in the same period.