Inditex
Note: This is a daily stock update and the information stands true as of 11/12/24, 09:00 CET.
Company Update:
Expert Opinion:
This is a slight miss in the grand scheme of things for Inditex which remains the best in class company in the industry. However, considering the extremely demanding valuation (PE25 (Jan) at 30x , PE26 (Jan) at 28.2x and PE27(Jan) at 26.5x) I expect a negative reaction on the share price especially as uncertainty on consumer demand remains.
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Company Update:
Q3 sales grew 6.8%, a decent performance but marking a slowdown vs Q2 (7.3%) and Q1 (7%).
9 months sales up 7.1% to €27.42bn, a slight miss vs expectations of €27.6bn
Profitability is also coming below consensus even though the EBIT margin is in line with company guidance.
Overall, 9m EBIT Came in at €5.67bn, 2.2% short of expectations.
Trading update: LFL sales between Nov 1 and Dec 9th up 9%. Company expects a 3% negative currency impact on FY24 sales and gross margin is expected to remain stable within a range of +/-50bps.
Expert Opinion:
This is a slight miss in the grand scheme of things for Inditex which remains the best in class company in the industry. However, considering the extremely demanding valuation (PE25 (Jan) at 30x , PE26 (Jan) at 28.2x and PE27(Jan) at 26.5x) I expect a negative reaction on the share price especially as uncertainty on consumer demand remains.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
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