Zara Sales Increase By 10% In 2023 To Propel Inditex To New Heights

(CTN News) – Inditex, the company that owns Zara, had a record day on Wednesday according to LSEG data, climbing more than 6% during intraday trading after the company revealed its full year results for 2023.

As of 11:50 London time, shares were just over 6% higher at 43.58 euros, which is equivalent to $47.69 at the time of publication.

It has been reported that the company’s sales increased by 10.4% to 35.9 billion euros for the year, indicating that it had reached a record high. Inditex has also reported that sales grew across all regions and across all of its brands, and were deemed to be “very satisfactory,” both online and in stores, according to the company.

In the end of the year, Inditex operated a total of 5,692 stores around the world, and said it plans to expand its operations even further in 2024, including opening Zara shops in Los Angeles and Las Vegas.

Furthermore, the company also plans to open new distribution centers in the years 2024 and 2025, as part of a major logistics expansion plan that is expected to cost the company 900 million euros over the next two years.

Last year, the company’s net income reached a new high after rising by 30.3% from the previous year to reach 5.4 billion euros, a new high for the company. Gross profits for the company came in at 20.8 billion euros, up 11.9% compared to last year’s figure.

There has been an excellent performance by Inditex in 2023. Taking advantage of the opportunities has enabled our teams to be able to keep growing profitably over the years.

It is vital that we continue to invest in order to drive future growth as well as continue to offer shareholders an attractive remuneration package,” Inditex CEO Oscar Garca Maceiras said in a statement.

The company owns a number of highly popular brands, including the household name Zara, as well as Pull & Bear, Bershka, Stradivarius, the premium retailer Massimo Dutti, as well as sporting goods manufacturer Oysho which focuses on athleisure.

It was reported on Wednesday that Zara, including Zara Home, was the biggest contributor to sales in 2023, followed by Pull & Bear and Massimo Dutti, according to Inditex.

According to the company, 2024 is off to a great start, with sales of the company in constant currency for the period from February 1 to March 11 up by a whopping 11%, compared to the same period last year.

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