Zara owner poised for record close as earnings optimism grows




Nov 21, 2023

Inditex SA shares are headed for the highest close since the retailer’s 2001 initial public offering as analysts turn increasingly optimistic ahead of third-quarter results.


The Zara owner gained as much as 1.3% to €36.81 in Madrid trading on Tuesday, the highest intraday price since June 2017.

The retailer’s fast-fashion business model and online presence have helped the shares climb about 50% this year, besting a retail sector that is the top performer in Europe. The Stoxx Europe 600 Retail Index is up 26% in 2023 as customers have hit the shops following pandemic-era lockdowns.

Inditex is due to announce results on Dec. 13, with analysts expecting the Spanish company to report record quarterly net income, according to data compiled by Bloomberg.

Morgan Stanley analyst Grace Smalley says an improvement in Inditex’s gross margin could serve as a “bright spot” during the third quarter, amid headwinds of unseasonably warm weather and adverse currency movements.

“Inditex continues to outperform and gain market share, led by the company’s continued widening moat and differentiation across product and store experience relative to peers,” Smalley wrote in a note, raising her bull and bear case targets on the stock, but leaving her €38 price target unchanged.



Read original article here

Denial of responsibility! Todays Chronic is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – The content will be deleted within 24 hours.

Leave a Comment