By Inditex, the parent company of Zara, Bershka, Massimo Dutti, and Pull&Bear, is preparing to announce its financial results for the second quarter. Here are the key details:
Sales
In the first quarter, Inditex reported sales of 7.61 billion euros ($8.14 billion). Analysts estimate that the company will report sales of EUR9.07 billion in the second quarter, bringing the total for the first half of the year to EUR16.68 billion.
Earnings
The FactSet poll suggests that Inditex is projected to achieve second-quarter earnings before interest and taxes of EUR1.59 billion. Additionally, earnings before interest, taxes, depreciation, and amortization are forecasted to reach EUR2.35 billion.
What to Look Out For
Margins
Investors will be closely monitoring Inditex’s margins. The company has provided guidance for a stable gross margin, plus or minus 50 basis points for the full year. Analysts anticipate a gross margin of 56% in the second quarter. Jefferies analysts highlight factors such as reduced air freighting costs, strong full-price sales, and a strategic position within USD-sourcing as factors that support a resilient gross margin.
Performance Compared to Peers
UBS analysts predict that Inditex will continue to demonstrate strong execution and momentum in the second quarter, solidifying its position as the top performer in the consumer discretionary sector. The company’s shares have surged by 44% year-to-date, outpacing its peers.
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