The company attributed this success to its “fully integrated” model with store differentiation. Inditex reported that online sales in constant currency were 6% lower due to a strong comparable base (67% growth in the same period last year) and are expected to make up 30% of total sales by 2024.
Performance was strong for the company in all regions not affected by Covid lockdowns, with growth in the U.S. leading the way. Store openings were carried out in 16 markets during the quarter, bringing the company to a total of 6,423 stores.
Inditex has paused its operations in Ukraine and Russia and, during Covid restrictions, 67 stores were closed in China. Four stores remain closed in China.
Gross profit for the company in Q1 was up 37% to €4.1 billion with a gross margin of 60.1%. EBITDA was up 55% to €1.9 billion and net income came in with growth of 80% at €760 million.
Looking forward, the company said in a statement: “Inditex continues to see strong growth opportunities. The strategic initiatives to strengthen our global fully integrated store and online model are accelerating. Sustainability and digitalisation are key parts of our strategy. We plan to continue developing these key long-term priorities in order to maximise organic growth.”