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Industria De Diseno Textil SA ITX

Rating as of

Morningstar’s Analysis

Valuation
Currency in EUR
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Inditex's Quarterly Revenue Outstrips 2019 Levels as Markets Reopen. Shares Fairly Valued

Jelena Sokolova, CFA Senior Equity Analyst

Analyst Note

| Jelena Sokolova, CFA |

We expect to increase our full-year forecasts for narrow-moat Inditex’s revenue and profits following strong first-half results; however, we don’t expect this to have a material impact on our fair value estimate. We believe the shares are fairly valued at current levels.

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Company Profile

Business Description

Inditex is a multibrand fashion conglomerate, founded in 1985. Zara is its flagship brand (including Zara Home), generating just under 70% of revenue and just over 70% of profits. Other brands include Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Uterque. The company operates through 7,000-plus stores globally, over 2,000 of them belonging to the Zara brand. Sixty-five percent of revenue is generated in the European home market, while the Americas and Asia contribute 16% and 19%, respectively. The company keeps design in house while mostly outsourcing manufacturing (own manufacturing constitutes only a low-single-digit percentage of output). Over 50% of sourcing factories are in proximity to the company’s headquarters in Spain.

Contact
Edificio Inditex, Avenida de la Diputación
Arteixo, 15142, Spain
T +34 981185400
Sector Consumer Cyclical
Industry Apparel Retail
Most Recent Earnings Jul 31, 2021
Fiscal Year End Jan 31, 2022
Stock Type
Employees 144,116

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