Inditex net profits more than double despite COVID-19 challenges
Sales were up 36% to £23.2 billion (€27.7 billion) against 2020. Online sales totalled £6.3 billion (€7.5 billion), increasing 14% to reach 25.5% of Inditex's total sales.
In the first quarter, Inditex acknowledged that store trading hours were 24% below capacity due to COVID-19 restrictions. With a more normalised trading environment in the second and third quarters, sales and net income reached record highs.
EBITDA reached £6 billion (€7.2 billion), increasing 58% since 2020. EBIT was £3.59 billion (€4.28 billion), an increase of 184.2%.
Gross profit increased 39% to the £13.2 billion (€15.8 billion).
Looking ahead, Inditex plans to continue developing key long-term priorities in order to maximise organic growth. The company expects, at current exchange rates, a neutral currency impact on sales in FY22. Online sales are expected to exceed 30% of total sales by 2024.
Inditex’s Executive Chairman, Pablo Isla, commented: “After two years of the pandemic, this set of results demonstrates the incredible ability to adapt to any circumstances which characterises the people who work here, borne from their commitment and talent”.
Inditex's Group CEO, Óscar García Maceiras, added: “The leadership demonstrated by the company in regard to its digital transformation all these years places us in an unrivalled position to offer an exceptional level of engagement with our quality and sustainable fashions”.