Executive Summary

• Inditex reported 1H17 normalized earnings per share (EPS) of €0.40, an increase of 7.7% over 1H16 and in line with the consensus estimate of €0.40. The company reported revenue increased by 11.1% to €10.47 billion, above the consensus estimate of €10.43 billion. Comparable-store sales in 1H17 increased an impressive 11% year over year, at constant currency.
• Earnings before interest and tax (EBIT) increased 7.9% to €1.6 billion, slightly above the consensus estimate of €1.59 billion. The company’s 1H17 EBIT margin contracted by 50 basis points year over year to 15.3%.
• Inditex’s results were supported by store and online expansion and strong comps. In FY17, the company plans to expand its store network and e-commerce operations in order to continue increasing revenue and profitability.