Inditex's Steady Growth Amidst Fashion Industry's Challenges

Inditex, owner of Zara, reported strong sales growth of 10.5% to 38.6 billion euros, meeting market expectations. Despite a slower first quarter, the company remains committed to profitable growth, as net profits rose 9% to 5.9 billion euros. Inditex plans a 9% dividend increase.

Inditex, the owner of fashion giant Zara, has reported robust growth in its fourth-quarter results, aligning with analysts' forecasts and underscoring its position as a leading player in the fast-fashion sector. Despite a slower start to the new fiscal year, sales inched upwards by 4% in currency-neutral terms from February 1 to March 10.

For the entire year, Inditex recorded a sales increase of 10.5% in currency-neutral terms, amounting to 38.6 billion euros. This was bolstered by fourth-quarter sales of 11.2 billion euros. The company confidently looks to the future, with net profit climbing 9% to 5.9 billion euros, ensuring a steady path towards profitable growth.

CEO Oscar Garcia Maceiras highlighted the group's resilient growth trajectory, emphasizing their strong commitment to maintaining profitability. Inditex, also owning brands like Bershka and Massimo Dutti, has announced a significant dividend hike of 9%, equating to 1.68 euros per share.

(With inputs from agencies.)