Inditex (BME:ITX) 9M17 Results: Continued Strong Sales Performance

Executive Summary

• Inditex reported 9M17 EPS of €0.71, an increase of 9.1% over 9M16 and slightly below the consensus estimate of €0.72. The company reported that revenue (store and online) increased by 11.3%, to €16.4 billion, in line with the consensus estimate. Constant-currency 9M17 sales increased 14.5% year over year and same-store sales remained strong, with positive comps in all geographic regions.
• EBIT increased by 9.3% to €2.8 billion, in line with the consensus estimate. 9M17 EBIT margin contracted by 30 basis points year over year to 17.2%.
• Inditex’s results were supported by store and online expansion and very strong comps. Constant-currency store and online sales increased by 16.0% year over year during the period of November 1 to December 12, 2016.