A shopper carries two large bags from clothing retailer Zara on Oxford Street in London, United Kingdom, on February 5, 2024.
Mike Kemp | In pictures | Getty Images
Shares of Zara owner Inditex hit record highs on Wednesday according to LSEG data, rising more than 6% during intraday trading after the company announced its full-year results for 2023.
As of 11:50 London time, shares were slightly higher by 6% at €43.58, or $47.69.
The company said sales increased 10.4% to 35.9 billion euros this year, suggesting this is a record high. Sales grew in all geographies and across Inditex's brands and were “very satisfactory”, both online and in-store, the company said.
A total of 5,692 stores were operational at the end of the year, Inditex said, adding that it plans to expand further in 2024, including Zara stores in Los Angeles and Las Vegas. The company also plans to open new distribution centers in 2024 and 2025, as part of a major logistics expansion plan that will cost the company investments amounting to 900 million euros in both years.
Net income also reached a new high after rising by 30.3% from 2022 to reach €5.4 billion last year. The company's total profits reached 20.8 billion euros, an increase of 11.9% year-on-year.
“Inditex's performance in 2023 has been excellent. Our teams have been able to capitalize on opportunities to continue to grow profitably. We are investing to drive future growth and continue to offer attractive remuneration to shareholders,” said Oscar García Maceras, CEO of Inditex. a permit.
The Spanish clothing company owns a portfolio of widely recognized brands, including household name Zara, as well as Pull & Bear, Bershka, Stradivarius, premium retailer Massimo Dutti, and sports and activity-focused Oysho.
Zara, including the Zara Home range, was the largest contributor to sales in 2023, followed by Pull & Bear and Massimo Dutti, Inditex said on Wednesday.
The company also noted that 2024 was off to a strong start, with constant currency sales up 11% during the period from February 1 to March 11, compared to the same period a year earlier.
