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Zara owner Inditex has revealed that sales grew 13% in the first three months of 2023 to reach €7.6bn (£6.5bn), as its Spring/Summer collections have been “very well received” by customers.
The group reports that sales were also positive in all of its geographical areas and in all brands, with sales growing 15% in constant currency.
For Q1 2023, gross profit also increased 14% to €4.6bn (£3.9bn) and reached a gross margin of 60.5% – a 34 bps increase compared to Q1 2022.
According to the fashion group, all expense lines have also shown a “favourable” evolution, as operating expenses increased 13% below sales growth.
Meanwhile, EBITDA increased 14% to €2.2bn (£1.8bn) and the group’s net income increased 54% to €1.2bn (£1.03bn) by the end of Q1.
Due to the group’s reported strong operating performance, cash from operations also increased markedly and its net cash position grew 14% to €10.5bn (£9.04bn).
Inditex maintains that its Spring/Summer collections continue to be well received by customers, as store and online sales in constant currency between 1 May and 4 June increased 16% compared with the same period last year.
News of the group’s Q1 performance came with an announcement that non-executive independent director of the group, Emilio Saracho Rodríguez de Torres, will leave the board once his tenure expires at the Annual General Meeting scheduled on 11 July.
