Inditex, the parent company of fashion retail brand Zara, has reported net income of €1.29bn ($1.40bn) in the first quarter (Q1) of the fiscal year 2024 (FY24), increasing 10.8% from €1.17bn in Q1 FY23. 

During the quarter ending 30 April 2024, net sales for Inditex amounted to €8.15bn, a 7% increase from the €7.61bn recorded in the corresponding quarter of the previous fiscal year.  

Its earnings per share for the quarter were reported at €0.41, up from €0.37 in Q1 FY23.

Inditex's earnings before interest and taxes showed a 10.3% increase to €1.63bn, while profit before tax improved by 11.1% to €1.7bn over the first quarter of FY24. 

The company's earnings before interest, taxes, depreciation, and amortisation for the quarter stood at €2.37bn, an increase from €2.19bn in Q1 FY23.  

The company posted a 7.3% increase in gross profit over the quarter, reaching €4.94bn compared with €4.60bn in the same period of fiscal 2023. 

Its gross margin also saw a slight improvement, climbing to 60.6%, growing 13 basis points (bps) from 60.5% in Q1 FY23. 

On 3 April 2024, Inditex announced the reopening of 20 stores across seven brands and the resumption of online operations in Ukraine, with a total of 48 stores now operational in this market. 

The company ended the quarter with a global store count of 5,698. 

For the full year 2024, Inditex anticipates a -2% currency impact on sales at current exchange rates.  

It also expects gross margin to remain stable, with a variation of +/-50 bps.  

The company’s store and online sales in constant currency from 1 May to 3 June 2024 have already seen a 12% increase compared to the same period in 2023. 

Inditex is embarking on a logistics expansion plan for 2024 and 2025, with an investment of €900m annually to enhance logistics capacities, incorporating sustainability standards and the latest technology.