Inditex shares plummet following the release of second-quarter results that do not meet market expectations. Despite a record in sales, rising costs have affected its net profit.
Shares of Inditex have recorded declines of nearly 4% after the presentation of results that have not satisfied investors, according to the news portal expansion.com. Despite achieving a record 1.605 billion euros in profits, this result is 5% below market forecasts.
The increase in operating expenses, which reach 3.269 billion euros and grow 10% compared to the previous year, has been a determining factor in the market's negative reaction. Iván San Félix, an analyst at Renta4, had anticipated that declines in the share price were expected following the announcement of these figures.
The EBIT margin has also deteriorated, leaving analysts in a cautious position. Elena Fernández-Trapiella from Bankinter points out that this is the second consecutive quarter in which costs are rising faster than sales, a significant change for the company.
Analysts warn that, in the current inflationary context, the increase in costs could continue to pressure Inditex's profitability. Javier Cabrera from XTB highlights that the situation is complicated by the escalation of prices globally.
Despite the immediate declines, market consensus indicates that there could be room for increases in the medium term, with an average target price of 60.52 euros per share, 10% above current levels.
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