Inditex (ITX) Q3 2024 earnings summary

Executive summary

• Achieved robust operating performance in 9M2024, driven by creativity, integrated business model, and strong execution across stores and online, with well-received Autumn/Winter collections.

• Sales growth was robust across all concepts and channels, with positive momentum into Autumn/Winter and continued global expansion, including openings in 45 markets.

• Continued focus on sustainability, innovation, and talent development to accelerate differentiation and support long-term growth.

Financial highlights

• Net sales rose 7.1% year-over-year to €27.4 billion in 9M2024; sales in constant currency up 10.5%.

• Gross profit increased 7.2% to €16.3 billion, with a gross margin of 59.4% (+4 bps); EBITDA up 7.2% to €8.0 billion; PBT up 9.9% to €5.8 billion; net income up 8.5% to €4.4 billion.

• Net cash position increased 3% to €11.8 billion; inventory as of October 31, 2024, was 2.6–3% lower year-over-year and considered high quality.

• Operating expenses grew 7.0%, 73 bps below sales growth, reflecting disciplined cost management.

• EPS at €1.428 (vs. €1.318 in 9M2023); EBITDA margin 29.1%, EBIT margin 20.7%, net income margin 16.2%.

Outlook and guidance

• Expects stable gross margin for FY2024 within +/- 50 bps of FY2023 and reiterates -3.0% currency impact on sales.

• Store and online sales in constant currency from 1 Nov to 9 Dec 2024 rose 9% vs. same period in 2023.

• Forecasts annual gross space growth of about 5% for 2024–2026, with positive space contribution to sales and strong online growth.

• Ordinary capital expenditure for 2024 estimated at €1.8 billion, with €900 million per year for logistics expansion in 2024 and 2025, focused on commercial space optimization and technology.