Spanish fashion retailer Industria de Diseño Textil SA (IDEXF.PK) or Inditex reported Wednesday higher profit in its first quarter with strong growth in net sales. Regarding the current trading, the company noted that sales in constant currency terms for the period from February 1 to June 3 increased 12 percent.
For the first quarter, net profit climbed 18 percent to 654 million euros from 554 million euros a year ago. earnings before interest and tax or EBIT was up 18 percent from last year to 834 million euros. EBITDA, a key earnings metric grew 17 percent year-over-year to 1.11 billion euros.
Gross margin improved to 58.2 percent from 58.1 percent a year earlier.
First-quarter net sales grew 14 percent to 5.57 billion euros from 4.88 billion euros last year. Sales growth in constant-currency terms was 12.5 percent.
The company noted that all of its brands increased their international presence, expanding their integrated physical and online store platforms. During the quarter, the company added four new e-commerce markets, with Zara launching online operations in Thailand, Malaysia, Singapore and Vietnam.
The company continued to expand and refine its presence in its 93 operating markets, ending the period with 7,385 stores. Zara is due to launch online in India during the second half of the year.
Inditex has scheduled its Annual General Meeting for July 18. The company said its Board will ask shareholders to approve the payment of an overall dividend from 2016 profits of 0.68 euros per share, of which 0.34 euros was already paid , while the balance would be paid on November 2.
The company noted that it generated over 10,668 new jobs over the past twelve months, 2,242 of which were in Spain.
by RTT Staff Writer
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