Inditex: shares down as sales growth slows
(CercleFinance.com) - Inditex, Europe's biggest clothing retailer and owner of the Zara chain, reported a slowdown in sales growth over the first nine months of the year, as Europe's warm weather weighed on sales this autumn.
On Wednesday the Spanish company said that net sales to end-November rose by just 3%, compared with a 10% rise in the same period of 2017.
In comparison, growth reached 11% in the same period of 2016.
However, as sales growth was accompanied by an expansion in its gross margin, the retailer saw EBIT rise by 3% to 3.1 billion euros in the first nine months of the year.
Net profit hit a new nine-month record, climbing 4% to 2.4 billion euros.
However, investors seemed to shun these results.
At 11:00 am, Inditex shares were tumbling 4.7% at 27.1 euros, the worst performer in Spain's Ibex shares index, and also underperforming the STOXX Europe 600 Retail index, which was down just 0.6%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
On Wednesday the Spanish company said that net sales to end-November rose by just 3%, compared with a 10% rise in the same period of 2017.
In comparison, growth reached 11% in the same period of 2016.
However, as sales growth was accompanied by an expansion in its gross margin, the retailer saw EBIT rise by 3% to 3.1 billion euros in the first nine months of the year.
Net profit hit a new nine-month record, climbing 4% to 2.4 billion euros.
However, investors seemed to shun these results.
At 11:00 am, Inditex shares were tumbling 4.7% at 27.1 euros, the worst performer in Spain's Ibex shares index, and also underperforming the STOXX Europe 600 Retail index, which was down just 0.6%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.