Inditex: Q1 net sales increase 2 percent
In the first quarter of 2018, net sales at Inditex reached 5.7 billion euros (6.6 billion dollars), 2 percent higher than in the same quarter in 2017. Sales in local currencies increased by 7 percent. The company opened stores in 36 markets during the first quarter and at the end of the quarter, Inditex operated 7,448 stores in 96 markets.
Financial highlights of Inditex’s Q1 results
Gross profit rose to 3.3 billion euros (3.8 billion dollars), 3 percent higher than the previous year and the gross margin reached 58.9 percent of sales compared with 58.2 percent in 1Q2017, an increase of 68 bps. EBITDA came to 1.1 billion euros (1.2 billion dollars), 1 percent higher than the comparable prior year period and EBIT to 851 million euros (999 million dollars), 2 percent higher compared to the first quarter last year. The company’s net income was 668 million euros (784 million dollars), 2 percent higher than the comparable prior year period.
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The company said, store and online sales in local currencies increased by 9 percent from May 1 to June 11, 2018. Zara launched online in Australia and New Zealand on March 14, 2018.
Inditex to propose FY17 dividend of 0.75 euros at its AGM
Inditex’s board of directors plans to propose a FY2017 dividend of 0.75 euros (0.88 dollar) per share, a total of 2.3 billion euros (2.7 billion dollars), at the AGM. 0.375 euro (0.44 dollar) per share was paid on May 2, 2018 as interim dividend, with a further 0.375 euro per share payable on November 2, 2018 as final ordinary and bonus dividend.
The company added that Carlos Espinosa de los Monteros will leave the company’s board of directors once his tenure expires at the AGM on July 17, 2018 and that the board will present for approval at the AGM the appointment of Pilar López Álvarez.