Madrid, March 13 (.).- A multinational company Inditex (MC :), which includes brands like Zara or Pull & Bear, will present results for the 2021 fiscal year (February 1 to January 31, 2022) next Wednesday, which could reflect a profit of more than 3,000 million euros.
As a conclusion to more than a decade as the company’s CEO, Pablo Isla, 58, will for the last time present Inditex’s fiscal year numbers with a rating satisfactory to analysts.
In 2021, the estimated earnings could be 62% higher than the 2020 earnings, but it’s still about 19% lower than those obtained in 2019, according to market sources consulted by EFE.
The same source indicates that the group’s sales volume in 2021 is expected to exceed 25 thousand million, which represents a 25% increase year on year.
With these calculations, the company founded by Amancio Ortega practically closes the solvency of the critical stage of the epidemic, which has fully affected the textile sector, and opens the door to a gradual improvement in results for the period between 2022 and 2023.
Results for the first nine months of the year and consumption behavior through February support positive data for Inditex’s eight brands.
In fact, between February and October 2021, a clear breakthrough was reflected in total sales, amounting to 19325 million, an increase of 37% over the same period in 2020, and a net profit of 2.500 million (273% more).
Only in the third fiscal quarter of 2021 did Inditex reach its historic maximum sales and earnings for that period.
Therefore, the dismissal of Pablo Isla from the presidency of the company occurs with a very positive balance for the thousandth year, although it will present a witness full of global doubts.
Coppola new management
Oscar García Maceiras, until the end of March as General Secretary, will succeed Isla and the group presidency will pass to Marta Ortega, the daughter of the founder, who thus guarantees the change of generations of the company.
With 2021 closing and new management leadership, Inditex’s plans for the new year have received many unexpected jolts.
The Russian invasion of Ukraine, the closing of Inditex stores in both countries, rising inflation, a global supply chain crisis and rising fuel prices will all disrupt the company’s forecast, which indicated three consecutive years of promotions in each. Results.
Unknowns in the short and medium term are also affecting Inditex, but with Pablo Isla already very far from the company.
García Maceiras will be the new captain to steer Galician across the Atlantic in the midst of the waves of war in its second market (Russia) through a number of stores, surpassed only by Spain.
last week, Credit Suisse (SIX 🙂 It described Inditex’s fiscal year 2022 as “extremely challenging” and stressed its exposure to Russia and Eastern Europe, with the nuances of the Chinese environment, rising costs and a “very discouraging” consumption outlook on the Old Continent.
In its forecast for the Galicia multinational, the Bank forecast a 15% decrease in sales for the 2022-2023 fiscal year
Moreover, Inditex arrives at the date of publishing results with successive fluctuations in the stock market, with the price last Friday of more than 22 euros per share from 21.57 euros at the opening, which is the lowest since October 2020.
Last week, the company lost nearly 10,000 million of its market value, having fallen nearly 13% in the backlog since then, so since the success of 2021 and the deposit of Isla, the company is turning into a challenging and unknown scenario with Garcia Maceiras at the frontline.
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