Inditex, the Spanish retail giant known for its popular brand Zara, reported a notable revenue surge for the fourth quarter, amounting to 11.21 billion euros. This figure aligns closely with the 11.2 billion euros anticipated by LSEG analysts and marks an increase from the 10.34 billion euros recorded during the same period last year. Despite this growth, shares fell sharply by 8.2% as of 8:34 a.m. London time, as the company cautioned about a potential slowdown in first-quarter sales.
The company's net income for the fourth quarter reached 1.42 billion euros, meeting analyst expectations. Inditex, which also owns brands such as Pull & Bear, Bershka, and Massimo Dutti, highlighted its performance in contrast to rival H&M. Earlier this year, H&M reported fourth-quarter sales that did not meet market expectations, with a rise of only 3% in local currencies to 62.19 billion Swedish krona. This divergence underscores the widening gap between the two retail giants.
Inditex attributed a rare miss on sales and profit in the third quarter to the influence of a stronger U.S. dollar. However, revenues from February 1 to March 10 showed a 4% increase in currency-neutral terms, indicating resilience amidst economic challenges. The year-on-year rise in fourth-quarter sales was consistent with market forecasts, reinforcing the company's stable performance.
For the fiscal year 2024, Inditex reported a 10.5% increase in full-year sales in currency-neutral terms, totaling 38.63 billion euros. The company's net income for the year amounted to 5.88 billion euros, aligning with analysts' projections.