By Cristina Roca
Inditex (ITX.MC) said Wednesday that its first-quarter net profit rose, and backed its guidance.
The Spanish fashion giant said net profit for the quarter ended April 30 was 734 million euros ($830.9 million), up 9.9% from EUR668 million for the same period the previous year. The result was slightly better than analysts' expectations of EUR731.5 million, according to a consensus estimate provided by FactSet.
The owner of Zara said sales for the quarter were EUR5.93 billion, up 5% from EUR5.65 billion year-on-year but below analysts' expectations of EUR6.08 billion, according to FactSet. Sales grew 5% in local currencies, Inditex said.
Commenting on the start to its second fiscal quarter, the company said that store and online sales in local currencies grew 9.5% in the May 1-June 7 period.
Inditex, which also owns the Pull&Bear, Massimo Dutti, and Bershka labels, said its gross margin expanded to 59.5% from 58.9%.
Earnings before interest and tax margin was 16.5% compared to 15.1% a year ago, Inditex said.
Inditex reiterated its guidance of 4%-6% like-for-like sales growth for the full fiscal year.
Write to Cristina Roca at firstname.lastname@example.org; @_cristinaroca