Zara Parent Company Inditex Latest Report: Net Sales In The First Three Quarters Increased 7.5% Over The Same Period Last Year.

A few days ago, Zara (SA LA)'s parent company, Spain's fast fashion giant Inditex announced the key financial data in the first three quarters of fiscal year 2019.
Thanks to the excellent performance of brands and markets, Inditex's net sales increased by 7.5% to 19 billion 820 million euros in the first three quarters of this year, and EBITDA (interest tax depreciation and profit before amortization) increased by 45% to 5 billion 702 million euros compared with the same period last year. Net profit rose 12% to 2 billion 720 million euros over the same period last year. In the third quarter, net profit increased by 14% to 1 billion 170 million euros, higher than analysts expected.
After the news came out, Inditex group's share price rose 5.24% to 30.12 euro per share in December 11th.
Pablo Isla, chairman and chief executive officer of Inditex group, said that "thanks to the joint efforts of online and offline industries, as well as the group's store location, store environment, product quality, consumer experience, technology and sustainable investment, Inditex has achieved steady growth in the first three quarters of this year."
According to management estimates, the net sales of Inditex group will grow by 4%-6% over the same period in fiscal 2019.
In the first three quarters, Inditex's brands further expanded the coverage of online and offline channels. In the third quarter, its main brand ZARA online sales platform landed in South Africa, Ukraine, Philippines and Columbia. The online platform of its fashion brand Massimo Dutti and home brand Zara Home also landed in UAE, Saudi Arabia, Lebanon and Morocco; its brand Stradivarius, Oysho and Uterq u E launched their respective online platforms in the United States. At present, the online sales network of Inditex's brand has already covered more than 200 markets in the world.
Meanwhile, in the third quarter, ZARA's two stores in Madrid and Dubai Mall reopened, and the ZARA store in Hongkong's IFC shopping center has also been expanded and reopened. In addition to ZARA, other brands of Inditex have opened new stores or new stores in the third quarter. As of October this year, the total number of Inditex's stores has reached 7486.
In July this year, Pablo Isla said at the shareholders' meeting that it will continue to promote the strategy of sustainable development, starting from seven directions, and implementing the "sustainable fashion" in 2025, such as color architecture, energy-efficient stores, raw materials, green packaging, environmental protection clothing, old clothes recycling, waste recycling and reuse.
In October this year, Inditex opened the first overseas for&from store in Como, Italy, aiming at promoting the integration process of social labor among disabled people, helping disabled people with different physiological or psychological barriers, and providing them with the opportunity to integrate into the social labor market.
From February 1st to October 31st this year, the key financial data of Inditex group in the first three quarters of fiscal year 2019 are as follows:
Net sales increased by 7.5% to 19 billion 820 million euros compared with the previous year, and net sales in the third quarter were 7 billion euros.
Gross profit increased by 8% to 11 billion 540 million euros compared to the same period last year.
Gross profit margin increased by 0.2 percentage points to 58.2% over the same period last year.
EBITDA grew by 45% to 5 billion 702 million euros over the same period.
EBIT (pre tax profit) increased by 16% to 3 billion 550 million euros compared to the same period last year.
Net profit increased 12% to 2 billion 720 million euros compared with the same period, and the net profit in the third quarter increased 14% to 1 billion 170 million euros.