Europe (excluding Spain) 47.5% America 20.0% Asia & RoM 18.1% Spain 14.4%
Regarding the group results, gross margin increased 17%, up to 18,559 million euros. The percentage gross margin reached 57% (8 points less than in 2021).
The strong control of operations and the implementation of efficiencies have allowed the increase in operating expenses to stand at 15%, below the growth in sales. Including all lease charges, operating expenses grew 5 percentage points below sales growth. He EBITDA reached the 8,649 million euros (+20%) and EBIT reached 5,520 million euros (+29%).
Profit before taxes increased by 28%, up to 5,358 million euros. The breakdown of profit before taxes by concept is shown below:
BAI by format (millions of euros)
Zara (Zara and Zara Home) 4,002 2,890 Pull&Bear 355 317 Masimo Dutti 226 250 Bershka 326 321 Stradivarius 371 332 Oysho 78 89
Net profit increased by 27% on 2021, standing at 4,130 million euros.
Inditex is confident of continuing to add great opportunities with which drive the organic growth of your business in the long term. For this, it has defined and ordered its priorities, focusing its focus on the continuous improvement of its fashion proposal, the optimization of the customer experience, the increase in its commitment to sustainability and the intention of preserving the talent and commitment of its people.
As they themselves maintain, their business model has enormous potential for the future. «The flexibility and responsiveness of our business model, with supply in proximity and during the season, allows a quick reaction to fashion trends and a unique position on the market«.
Currently, the growth of the group is supported by three pillarsas they had already commented in their results report for the first three quarters of 2022. These are: the investment in storesthe advances in online sales and the improvements to your logistics platformsfocusing on innovation and technology, with sustainability being a key part of its strategy.
Throughout 2022, Inditex has appreciated a strong progression of its unique business model, as well as a substantial increase in its differentiation. and search drive efficiency in all its areas of operationn to provide an even more engaging experience for your customers.
Regarding the evolution of online sales, this has been very positive and Inditex expects a growing share of it in the group’s total sales. At current exchange rates, predict a currency impact of -1% on sales in 2023 and achieve a stable gross margin in this same year.
For now, the company has decided that it will focus on the following areas over the next few years, with the aim of taking its business model to the next level and further expanding its differentiation:
Creativity, quality and design of the textile group’s products will continue to be the priority. To raise this bet commercial initiatives will be strengthened of all the chains owned by Inditex. Zara Woman Vacation Look or Massimo Dutti Linen Collection are two examples of the proposals that will be revealed throughout this year.
In addition, it is planned increase your logistics capacity with actions in the distribution centers of Arteixo, Zaragoza and Lelystad (Zara), Tordera (Bershka) and Sallent (Stradivarius), paying special attention to the optimization and automation of your operations. In this way they will strengthen their ability to offer their services to their clients where and when they want.
The customer experience will be the second main area in which Inditex will reinforce its efforts. Your goal is continue to offer the best shopping experienceboth in physical stores and on their websites.
Regarding physical stores, they plan enter new markets (Stradivarius in Germany, Oysho in the United Kingdom) and new locations (Zara in Champs Elíseos-Paris, or in Plaza del Duque-Seville). There will also be important reforms and expansions in its most emblematic stores (Zara Rue de Rivoli-Paris, Zara Stratford-London or Bershka Vittorio Emanuele-Milan).
And speaking of expanding borders and strengthening positions, Inditex has identified a great opportunity for long-term growth in USA. Therefore, between 2023 and 2025, Zara will undertake at least 30 projects in the North American country, which will involve: new stores, relocations and expansions. New York, Los Angeles, Miami, Chicago, Boston, Dallas, Austin and Las Vegas are some of the chosen cities.
Likewise, this year will begin to apply progressively a new security technology in the group’s physical stores, which will mean the elimination of traditional hard alarms. This change will improve the customer experience, facilitating interaction with garments and products, as well as improving the purchase process.
And, as for the online channel, the shopping experience of customers in it will also continue to be improved. For this, a new size recommender system and a personalization model in real time which will make the search easier.