Inditex shares rebounded 0.18% to 54.58 euros after a 3.61% drop following the second quarter results presentation. Despite this, the textile group has accumulated a 3.12% decline so far this year.
Shares of Inditex experienced a slight increase of 0.18% on Thursday, reaching 54.58 euros per share. This recovery comes after a 3.61% drop on Wednesday following the publication of second quarter results, which showed an accumulated decline of 3.12% for the year, according to information from expansion.com.
Although the results exceeded sales expectations, the rise in operating costs has negatively impacted profits. Analysts from Deutsche Bank highlight that no fundamental changes are expected in the company’s investment story, although they anticipate more moderate growth in future margins.
Inditex has maintained its forecasts for the fiscal year, anticipating a 5% growth in its gross retail space and a negative impact of one point on sales due to exchange rates. The gross margin is expected to remain stable.
Analysts are divided in their opinions on the company's accounts. Bankinter has downgraded its recommendation to neutral, arguing that “we do not detect catalysts for a multiple elevation in an adverse environment.” However, they have set a target price of 60 euros per share, representing an upside potential of 10%.
On the other hand, Jefferies is more optimistic, valuing Inditex at 67 euros. Despite surprises in operating expenses, most analysis firms continue to hold a positive outlook on the company.
Analysts from BofA have also expressed confidence, stating that “better growth expectations offset cost pressures.” In March, a new growth plan for retail space for the next three years will be presented, which could support a compound annual growth rate of 5%.
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