Inditex: Navigating Growth Amid Economic Shifts

Inditex, owner of Zara, reported fourth-quarter sales in line with expectations, showing a steady growth pattern. Though the new year's first quarter began slowly, sales increased by 10.5% in currency-neutral terms for 2023. The company plans to expand with a mix of investments in technology and new markets.

On Wednesday, Inditex, the owner of the renowned fast-fashion brand Zara, announced its fourth-quarter sales figures, aligning with analysts' projections. This seals yet another year of robust growth for the world's leading listed fast-fashion retailer.

Although Inditex's first quarter began at a slower pace with a 4% sales increase—significantly lower than the 11% growth over the same period last year—the overall annual sales still marked a 10.5% rise to €38.6 billion. Analysts express concerns about a softer exit rate compared to earlier expectations.

Despite these figures, Inditex remains confident, planning a 9% dividend hike and maintaining a capital spending forecast of €1.8 billion for store upgrades and technology improvements. The company is set to expand further, with new store openings in Iraq, Sweden, the Netherlands, and Germany.

(With inputs from agencies.)