Inditex reported continued strong revenue growth in the first half, with sales up 9.2% in constant currencies (8.8% in the first quarter). However, margin fell short of market expectations, coming in flat in the first half (up 30 basis points in the first quarter). Shares fell 5% on Sept. 9.
Inditex could further benefit from share gains from weaker midprice brands that still account for a significant part of the European apparel market.
Inditex could be too slow to trim its store count to address the channel shift to online, which could weigh on margins.
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Metric
|
ITX
|
GAP
|
URBN
|
|---|---|---|---|
Price/Earnings (Normalized) | 25.71 | 11.54 | 13.70 |
Price/Book Value | 9.26 | 2.07 | 2.36 |
Price/Sales | 4.01 | 0.56 | 1.09 |
Price/Cash Flow | 15.82 | 4.32 | 6.72 |
|
Metric
|
ITX
|
GAP
|
URBN
|
|---|---|---|---|
Quick Ratio | 0.86 | 0.77 | 0.71 |
Current Ratio | 1.16 | 1.82 | 1.58 |
Interest Coverage | 22.42 | 18.11 | — |
|
Metric
|
ITX
|
GAP
|
URBN
|
|---|---|---|---|
Return on Assets (Normalized) | 18.22% | 10.03% | 12.12% |
Return on Equity (Normalized) | 35.19% | 33.73% | 21.90% |
Return on Invested Capital (Normalized) | 26.92% | 13.24% | 15.18% |
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1-Day Chart
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Price
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Morningstar Rating for Stocks
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United States