Inditex SA, the powerhouse behind Zara, is poised for its highest close since its 2001 initial public offering, fueled by a surge in analyst confidence ahead of the eagerly awaited third-quarter results.
In Madrid trading on Tuesday, shares of the Zara owner surged by as much as 1.3% to €36.81, reaching the highest intraday price since June 2017. The remarkable growth is attributed to the retailer’s resilient fast-fashion business model and robust online presence, driving shares up by an impressive 50% this year. This surge outpaces the broader retail sector, positioning it as the top performer in Europe. The Stoxx Europe 600 Retail Index has recorded a 26% increase in 2023, reflecting a resurgence in consumer activity post-pandemic lockdowns.
The highly anticipated results from Inditex are scheduled for announcement on December 13, with analysts expecting the Spanish giant to reveal record-breaking quarterly net income, according to Bloomberg data.
Morgan Stanley analyst Grace Smalley sees a potential bright spot in Inditex’s gross margin during the third quarter, despite challenges like 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,» notes Smalley in a recent analysis. She has raised her bull and bear case targets on the stock while maintaining an unchanged €38 price target.
As Inditex approaches this potential record close, it not only highlights the brand’s resilience but also underscores its ability to innovate and stand out in the dynamic retail landscape. Stay tuned for the unveiling of what is anticipated to be a groundbreaking set of quarterly results on December 13, showcasing Zara’s enduring success.
