Shares in Zara owner Inditex hit record highs yesterday after it posted whopping earnings for its 2023-2024 financial year.
The company's stock price climbed over 6% to highs of €43.58 (£37.27) on news of record net profits of £46.02 billion pounds in the year from February 1 2023 to January 31 2024.
Its second earnings report under chair Marta Ortega, daughter of chief executive Óscar García Maceiras, also saw record sales of £30.74 billion, up 10.4% on 2022 levels.
Operating earnings before interest, tax, depreciation, and amortisation (EBITDA) also grew by 13.9% to £84.23 billion, while net operating income grew by 23.4% to £58.22 billion.
Inditex said sales had a "very satisfactory" evolution in both physical and online stores, while it was also bullish on the geographical distribution of sales strength.
"Inditex's performance in 2023 has been excellent," Maceiras said.
"Our teams have been able to seize opportunities to continue to grow profitably. We are investing to drive future growth and continue to offer attractive shareholder remuneration."
As a result of the strong earnings statement, the board of directors will now propose a dividend increase of 28% for 2023, to £1.32 per share, comprising an ordinary dividend of 89p and an extraordinary dividend of 0.43p per share.
The company estimates ordinary investments of around £1.5 billion will be made in 2024.
These will be dedicated to the optimisation of its commercial spaces, its technological integration and the improvement of its online platforms.
It will also undertake an extraordinary two-year investment program focused on the expansion of its logistics capacity, allocating over £769 million in both 2024 and 2025.