Inditex reports 36% rise in total sales but online sales dip

Inditex, owner of Zara and Pull&Bear, has released its financial results for the first quarter of 2022, revealing a 36% increase in global sales compared to 2021, totalling £5.7 billion.

For the first quarter ending 30 April 2022, Inditex reported the following results:

• Store sales increased, while online sales in constant currency were 6% lower.
• Gross profit increased 37% to £3.4 billion (€4.1 billion).
• Gross margin reached 60.1%, up 20 bps compared to Q1 2021 - the highest in 10 years.
• EBITDA increased 55% to £1.6 billion (€1.9 billion).
• Net income increased 80% to £648 million (€760 million). 

In Q1 2022, Inditex opened stores across 16 markets. At the end of the quarter, the group operated 6,423 stores, compared to 6,758 in 2021. Inditex temporarily paused its operations in Ukraine on 24 February 2022 and in the Russian Federation on 5 March 2022. In China, 67 stores were subject to lockdowns and to date, four stores remain temporarily closed.

Looking ahead, Inditex expects a neutral currency impact on sales in 2022. Online sales are expected to exceed 30% of total sales by 2024. The group also highlighted its strategic initiatives that will "help strengthen its global fully integrated store and online model", along with sustainability and digitalisation to maximise organic growth.

Óscar García Maceiras, CEO at Inditex, commented: "This set of earnings is the result of a well-differentiated model that is delivering strongly. The strength and adaptability of the business model and the excellent performance of our creative, sales and operating teams are driving that differentiation forward, underpinned by a strategic focus on innovation, digitalisation and sustainability."