Madrid, Spain– Zara owner Inditex, the world’s biggest fashion retailer, on Wednesday reported its highest-ever profits in 2023 thanks to buoyant sales and its policy of raising prices.
Its net profit reached 5.4 billion euros ($5.9 billion) last year, up 30 percent from 4.1 billion euros in 2022, which also was a record for the fashion giant whose eight brands include younger chain Pull&Bear and upmarket label Massimo Dutti.
The figure, which comes after a solid fourth quarter, was in line with the expectations of analysts polled by financial data firm FactSet, who predicted profits of 5.36 billion euros.
Inditex has been able “to take advantage of the opportunities to keep growing profitably,” said CEO Oscar Garcia Maceiras in a statement.
The group, which is based in the northwestern Galicia region, pointed to dynamic sales which hit a record 35.9 billion euros, showing a 10.4 percent increase on the year earlier.
The results came despite a complicated global backdrop of geopolitical tensions and persistently high inflation that has weighed on purchasing power.
But such pressures seem to have had little impact with the group posting a string of records and performing well on Madrid’s Ibex 35 stock exchange.
Marta Ortega, daughter of multi-billionaire founder Amancio Ortega, took over as chair in early 2022.
Over the last year, Inditex shares have added more than 40 percent to reach 40 euros.
The results raised the market capitalization of the Spanish retail giant to more than 127 billion euros, with the company saying it would pay shareholders a dividend of 1.54 euros.
The figure, which is 28 percent higher than in 2022, is the highest in the group’s history.
