- Inditex has increased its dividend by 28%, up to EU1.54 per share.
- The company’s 4Q Ebit matched estimates at EU1.62 billion.
- Inditex’s Ebit margin was slightly lower than estimated at 15.6%, compared to the predicted 15.8%.
- Net sales were slightly lower than expected, at EU10.34 billion versus the estimate of EU10.36 billion.
- The company’s gross profit was EU5.56 billion, slightly lower than the estimate of EU5.59 billion.
- Inditex’s gross margin matched estimates at 53.8%.
- The company’s Ebitda was as expected at EU2.42 billion.
- Ebitda margin was slightly higher than expected at 23.4% as opposed to the estimated 23.3%.
- Net income was slightly lower than estimated at EU1.28 billion, compared to the estimated EU1.29 billion.
- Inditex is planning an ordinary Capex of about €1.8B in 2024.
- The company is expecting an annual gross space growth of roughly 5% from 2024 to 2026.
- Inditex’s sales from February 1 to March 11, excluding FX, increased by 11% year over year.
- The company’s stock has 19 buys, 10 holds, and 4 sells.
Industria De Diseno Textil SA on Smartkarma
Industria De Diseno Textil SA, a global fashion retailer, has been the subject of recent analyst coverage on Smartkarma, an independent investment research network. According to a report by Nimish Maheshwari, the outlook for the company may not be as rosy as it seems. Maheshwari, who holds a bearish view on the company, highlights the challenges faced by Bangladesh’s garment industry, which accounts for a significant portion of Industria De Diseno Textil SA‘s exports. The industry has seen a 14% decline in exports, leading to worker unrest over wage disparities and potential factory closures. Despite efforts by a wage board, workers are still advocating for a minimum wage of Tk25,000, which could further impact the company’s operations and profitability.
The potential economic turbulence caused by these issues is a cause for concern for Industria De Diseno Textil SA, as it relies heavily on the garment industry in Bangladesh for its exports. Maheshwari’s report sheds light on the risks and challenges faced by the company, providing valuable insights for investors to consider. With 3,500 factories, accounting for 85% of exports, facing the possibility of closure, the situation is a cause for concern for both the company and its investors. Maheshwari’s report serves as a reminder that beyond the glamour of the fashion industry, there are real challenges and risks that could impact the performance of companies like Industria De Diseno Textil SA.
A look at Industria De Diseno Textil SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Industria De Diseno Textil SA, a company that designs, manufactures, and distributes apparel, has a positive long-term outlook according to Smartkarma Smart Scores. The company has received a score of 2 for value, indicating that it is considered fairly valued. It has also received a score of 3 for both dividend and growth, suggesting that it has potential for future growth and potential for dividends for investors. Additionally, the company has received high scores of 5 for both resilience and momentum, indicating that it is well-positioned to weather any market downturns and has strong momentum for future growth.
Based on the description of the company, Industria De Diseno Textil SA operates retail chains in various regions around the world, including Europe, the Americas, Asia, and Africa. With a strong presence in multiple markets, the company has a diverse customer base and potential for further expansion. Its high scores for resilience and momentum suggest that it is well-managed and has a strong foundation for future growth, making it a promising investment opportunity for long-term investors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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