Online sales also grew to reach €7.8 billion, an increase of 4 per cent from the previous year’s record figure, the company said in its FY22 results.

Inditex has posted a 17.5 per cent rise in net sales to €32.6 billion in FY22, driven by a marked increase in traffic and store sales and positive sales growth in all geographical areas. The company has achieved 100 per cent of the electricity used in its facilities from renewable energy sources in FY22, and expects stable gross margins in FY23.

Inditex’s gross profit was up by 17 per cent to €18.6 billion in FY22, with a gross margin of 57 per cent. The company’s tight control of operations and the implementation of efficiencies resulted in operating expenses growth of 15 per cent, below sales growth. Furthermore, the company’s EBITDA reached €8.6 billion, up 20 per cent compared to the previous fiscal, while the EBIT was €5.5 billion, an increase of 29 per cent compared to the previous year.

In FY22, Inditex opened stores in 33 markets and continued to optimise its stores and digitalise its operations. The company achieved 100 per cent of the electricity used in its facilities from renewable energy sources, reflecting its commitment to sustainability.

Inditex expects to see growth opportunities in 2023 in the highly fragmented sector in which it operates, with a projected increase in sales productivity in its stores. The company plans to grow gross space by around 3 per cent, while continuing to optimise stores. Inditex also expects to see positive contribution from space to sales in 2023.

In FY23, the company expects stable gross margins (+/-50 bps), while the ordinary capital expenditure is expected to be around €1.6 billion.

“The excellent results of 2022 show the strength of our business model and its ability to move towards the next level of development in which our fashion proposition, the experience of our customers, our commitment to sustainability and the talent of our teams will continue to be key,” said Oscar García Maceiras, CEO.

Fibre2Fashion News Desk (DP)