INDITEX (BME: ITX) FY15 Results: International Expansion and Growing Comps Underpin Results

Executive Summary

• Inditex reported FY15 normalized EPS of €0.92, an increase of 14.9% over FY14 and below the consensus estimate of €0.93. The company reported that revenue increased by 15.4%, to €20.9 billion, slightly above the consensus estimate.
• EBIT increased by 14.9%, to €3.7 billion, just below the consensus estimate, while net income also grew by 14.9%, to €2.9 billion, slightly below consensus.
• Inditex’s results were supported by store and online expansion and favorable comps. For FY16 the company plans to continue increasing revenue and profitability mainly by expanding its store network and e-commerce operations.