Inditex to launch Zara resale platform in U.S. as profit surges

By Steve Goldstein

Spanish retailing conglomerate Inditex on Wednesday said it will launch its Zara resale platform in the U.S. after a year of strong profit growth.

Inditex (ES:ITX) said its annual profit rose 30% to EUR5.38 billion ($5.88 billion), as sales rose 10% to 35.95 billion. That's 14% growth at constant currencies. Analysts polled by FactSet had expected earnings of EUR5.35 billion on sales of EUR35.95 billion.

It said its spring and summer collections have been very well received as it reported sales at constant currencies, adjusted for the extra leap day, of 11% between Feb. 1 and March 11. According to Citi, the consensus expectation was a first-quarter constant currency sales growth of 8%.

It's planning to increase its dividend by 28% to 1.54 euros per share.

Inditex shares rallied 6% in Madrid, and the stock has surged 57% over the last 52 weeks.

Inditex, whose other brands include Pull & Bear and Massimo Dutti, said it will launch the Zara pre-owned platform after launching in 16 European markets in 2023. It's also going to launch a weekly livestream for Zara in the U.S. and the U.K.

It's targeting a 5% rise per year in gross space from 2024 to 2026, and for 2024, stable gross margins and a currency headwind of 1.5%.

-Steve Goldstein

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03-13-24 0722ET

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