Shares of Zara owner Industria de Diseño Textil S.A., or Inditex (ES:ITX), continued their upward momentum after reporting strong results for the first half of 2024. The company reported a 10% year-over-year growth in its first-half profits, reaching €2.8 billion. After the results, ITX stock rose nearly 5% in yesterday’s trading session and is up an additional 2% as of writing today.
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Inditex is a Spanish retailer that operates globally in over 200 markets, with brands like Zara, Pull & Bear, and Massimo Dutti.
Inditex Reveals Solid H1 2024 Results
In H1 2024, Inditex’s sales grew 7.2% to €18.1 billion, driven by growth across both in-store and online channels. However, this was a slower growth rate compared to the first half of 2023, when sales increased 13.5%.
Meanwhile, for the six months ending July 31, Inditex’s gross profit grew 7.5% year-over-year to €10.5 billion. Additionally, EBITDA (earnings before interest, tax, depreciation, and amortization) grew 8.1% to €5.0 billion.
Inditex Sees Autumn Sales Boost After Summer Slump
Along with its first-half performance, Inditex stated that its autumn/winter collection has been well received by customers. Its store and online sales (in constant currency) jumped 11% between August 1 and September 8, 2024, compared to the same period in 2023.
This growth helped offset the sales slowdown experienced in the first half. Additionally, it came as a relief for investors, given the challenging period for European fashion retailers due to weather-related concerns.
Is Inditex a Good Stock to Buy?
As per the consensus among analysts on TipRanks, ITX stock has been assigned a Moderate Buy rating based on five Buys, three Holds, and one Sell recommendation. The Inditex share price target is €47.88, which is 3% below the current share price.
