Executive Summary

• Inditex reported fiscal 1Q17 revenue of €4.9 billion, up 11.5% year over year and above the consensus estimate of €4.8 billion. Net income (GAAP) increased by 6.3%, to €554.0 million, above the consensus of €544.6 million. EPS was €0.18, an increase of 5.9% versus 1Q16 and in line with consensus.
• Solid comps and an expanding geographical reach drove up revenue and profit. Tight control of operating expenses also contributed to the results.
• The company will continue its revenue and store expansion in 2Q17. Analysts expect Inditex revenues to be up 9.8%, to €5.5 billion, and net income (GAAP) to rise by 4.2%, to €672.0 million, in 2Q17.