Inditex

In the first half, Inditex’s revenue rose 7.6% to just under €19.8 billion and gross profit grew 8.3% to €11.6 billion, but EBIT was €3.84 billion, below consensus, and the operating margin fell to 19.5%. Higher selling, administrative and rental costs weighed on profitability. The company plans, in addition to regular investments of around €2.3 billion, additional extraordinary expenditures of about €200 million. JPMorgan and analysts view the small EBIT shortfall as offset by strong revenue trends; sales momentum at Zara, Bershka and Stradivarius remains robust. » Plus sur deraktionaer.de

Inditex reports significant revenue and earnings growth for the first half of the fiscal year; currency‑adjusted sales in the new half‑year through Sept. 7 rose by 9 percent. The operating result (EBIT) narrowly missed analysts' expectations, sending the stock down more than 3 percent as the laggard in the EuroStoxx 50. Group revenue increased to €19.8 billion and EBIT to €3.8 billion, with net profit at €3.0 billion; the company plans investments of around €2.5 billion and aims to expand gross selling area by about 5 percent by 2026. » Plus sur finanzen.net

Inditex shares rose up to 3.4% to €56.29 after Barclays’ upgrade, which lifted the price target from €56 to €62.50. Barclays cites pricing power, efficient inventory control and higher medium-term sales and margin forecasts as drivers; the firm expects EPS growth of around 11% and a dividend yield of 4%. For the next 12 months Barclays forecasts a total return in the mid-double-digit percentage range; Q2 results on 9 September are seen as the first test of the forecasts. Risks include heatwaves in Europe, waning US tax-refund support and higher fuel costs that could weigh on margins. » Plus sur de.investing.com