Inditex sales increase 17.5% in 2022 as business model development continues

Inditex, the owner of brands including Zara and Pull&Bear, saw sales reach £28.77 billion (€32.6 billion) in the full year ending 31 January 2023, representing a 17.5% rise year on year.

The parent company reported that sales were positive in all key geographical areas, both in store and online. The company noted that in the financial year it had closed all 514 stores and its ecommerce in Russia, as well as 82 stores in Ukraine.

In 2022, store sales grew 23%, achieved with 10% less stores and 6% less commercial space than in the previous year results. The company attributes this increase to "ongoing store optimisation" and its digitalisation programme.

Online sales grew 4% overall to £6.88 billion (€7.8 billion), described by the business as "satisfactorily", with customer engagement remaining very high.

Net sales by brand:

• Zara (including Zara Home): £20.96 billion (€23.76 billion)
• Pull&Bear: £1.9 billion (€2.15 billion)
• Massimo Dutti: £1.41 billion (€1.6 billion)
• Bershka: £2.12 billion (€2.4 billion)
• Stradivarius: £1.81 billion (€2.05 billion)
• Oysho: £549.7 million (€623 million)

Looking at the results geographically, Europe (excluding Spain) represented 47.5% of total sales, America 20%, Asia and RoW 18.1%, and Spain 14.4%.

Total gross profit increased 17% to £16.41 billion (€18.6 billion), reaching a gross margin of 57%. Net income also increased to 4.1 billion (27% compared to the previous year).

In the financial year, Inditex opened stores in 33 markets, opening 201 new stores and refurbishing 186 locations. By the end of the financial year, Inditex was operating a total of 5,815 stores.

Looking ahead, Inditex said it continues to see growth opportunities in its business model, seeking to "continuously improve the product proposition, enhance customer experience, increase our focus on sustainability and preserve the talent and commitment of our people."

The group also will "reinforce the commercial initiatives" of all of its brands, specifically highlighting that Zara Woman Vacation Look, Massimo Dutti Linen, and Bershka Denim Statement, will all be available throughout 2023.

2023 will also see the business phase out its old hard tags on products, introducing "new security technology" in all stores. The new technology will "significantly improve customer experience" and improve the purchasing process.

Oscar Garcia Maceiras, Ceo of Inditex, commented: "The excellent results of 2022 show the strength of our business model and its ability to move towards the next level of development in which our fashion proposition, the experience of our customers, our commitment to sustainability and the talent of our teams will continue to be key."