Executive Summary

• Inditex reported FY17 revenues of €25,336 million, up 8.7% year over year and slightly below the consensus estimate of €25,406 million.
• In FY17, the company grew operating income by 7%, but its operating margin contracted by 20 basis points. Adjusted EPS was €1.08, up 6.7% year over year and in line with the consensus estimate.
• In FY18, Inditex expects to grow its store space by 6%, net of closures. The company expects to incur capital expenditures of €1.5 billion, driven mainly by the opening of new stores.