Zara’s owner Inditex on Wednesday recorded a year-on-year increase in the fourth quarter sales, which meets expectations, even the retailer pointed to the recession in demand at the beginning of the year.
The Spanish retailer reported revenue of 11.21 billion euros ($ 12.2 billion) over a period of three months, with the forecast of 11.2 billion euros by LSEG analysts and 10.34 billion euros recorded in the same period of previous year.
The fourth quarter net income came in 1.42 billion euros, as well as analyzer expectations.
It follows a rare miss on sales and benefits in the third quarter, which the company partially attributed to a strong US dollar.
Full-year sales increased by 10.5% to a total of 38.63 billion euros in 2024, which is fine from the anticipated 38.57 billion euros, while net income came in 5.88 billion euros for the year, in accordance with the forecast. It is compared to net sales of 35.9 billion euros and net income of 5.4 billion euros in 2023, said the company said the records were high.
The stocks were 7.2% below at 9:30 pm at London.
The company, which also owns Bridge and Beer, Barshaka and Masimo Datti, pointed to a slight slow pace of growth in the first quarter sales this year. Revenue in currency neutral terms from 1 February to 10 March was 4%, an increase of 11% before the year.
When asked about the recession during an earning call, CEO Gerscar Garcia Messires said that according to the company “Reuters,” remained confident in our execution for the year, “according to the Reuters. However, he pointed to uncertainty around us, making the atmosphere” difficult “.
Results indicate a widespread difference between inditex and rival H&MWhich is struggling between low-cost retailers such as Chinese-installed fast-fashion giant shin.
In January, H&M reported the sale of the fourth quarter that decreased from expectations, but still increased by 3% in local currencies to 62.19 billion Swedish Chron ($ 6.15 billion). The Swedish High Street Retailer said that there was a sales injury during the time of black Friday, but things arose in December and January.
This is a braking news story and will be updated soon.
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