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Research Tree provides access to ongoing research coverage, media content and regulatory news on INDUSTRIA DE DISENO TEXTIL. We currently have 4 research reports from 1 professional analysts.
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INDUSTRIA DE DISENO TEXTIL
INDUSTRIA DE DISENO TEXTIL
Always living up to promises
14 Dec 16
The market momentum remains always favourable for Inditex. The growth pace was maintained in Q3 with an 11% surge in sales over the first nine months (+11% in H1) to reach €16.4bn. The strengthening euro has hit the performance only mildy as the sales increase amounted to 14.5% in local currencies. Margins have retreated slightly due to a 90bp slump in the gross margin (57.9%). EBIT was up 9% to €2.8bn, i.e. an operating margin of 17.2% vs. 17.5% a year earlier. Net income came to €2.2bn (+9%). The financial structure remains solid with increasing net cash from €5.1bn in October 2015 to €5.7bn in 2016. The positive momentum is confirmed in early Q4 with sales surging by 16% (in local currencies) up to 12 December. Global expansion is well on track in both physical stores and online. The group operates 7,240 stores in 93 markets.
21 Sep 16
The largest global retailer outperformed with 11% sales growth in H1 16 to reach €10.47bn. Forex moves have slightly halted the performance as sales in local currencies were up 16%. Organic growth remained strong at 11%. All the group’s brands experienced favourable momentum with a marked outperformance for Zara’s home concept which grew by 17% to €343m. The regional breakdown of revenues remained flat, where Europe contributed 60% to revenue and Asia less than 25%. The gross margin retreated by 1.3ppt to 56.8% bringing the gross profit to €5.9bn (+9%). EBITDA amounted €2.1bn, 7% higher than in H1 15. EBIT rose by 8% to €1.6bn. Net profit was up 8% to reach €1.26bn. The strong operational performance preserved a solid financial position with 13% surging net financial cash at €4,923m and a marked low debt level (€127m). WC remained almost flat at €-2,176m vs. €-2,239m a year earlier. The downstream expansion is ahead of schedule with 83 net openings in 38 markets, bringing the distribution network to 7,096 stores in 91 markets. Online sales are well on track. The start of H2 16 is promising as sales in local currencies have increased by 13% from 1 August to 18 September 2016. A final ordinary dividend of €0.30 per share will be payable on 2 November.
Growth well on track
15 Jun 16
Q1 16 sales were up by 12% to €4.9bn, held back partially by currency moves as the performance in local currencies was 17%. In Q1 16, Inditex consolidated its presence in 31 markets with 72 new openings, leading to a network of 7,085 stores by the end of April vs. 6,746 a year earlier. The platform expansion, both physical stores and online, raised operating costs by 10% and lowered the gross margin by 130bp yoy to 58.1%. EBITDA increased by 7% to reach €955m, leading to an EBITDA margin of 19.6% vs. 20.5% in Q1 15. EBIT amounted to €705m (+6%). Net profit increased by 6% to €554m. The strong operational performance sustains the solid financial position with a high cash position and low debt level. Net financial cash came to €5bn compared €4.1bn in Q1 16. The operating working capital was €-2bn. Q2 16 started in good shape as sales surged by 15% in local currencies up to 13 June. The Board will propose an annual dividend of €0.6, of which an interim dividend of €0.3 has already been paid to shareholders.
Immune from slowdown
18 Dec 15
The nine months’ sales grew by 15.7% yoy to €14,744m through 6,913 stores across 88 markets, i.e. a net channel expansion of 136 new stores in Q3 15. Europe contributed 47.4% to the nine months’ sales, followed by America at 20.4% and Asia & the rest of the world at 32.2%. Profitability was as guided with EBITDA increasing by 18% to €3,328m. EBIT amounted to €2,583m, drawing a net profit of €2,020m, i.e. 20% growth. Gross cash increased from €3,626m in October 2014 to €4,982m a year later.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
CORETX (COR LN) Contract wins and new Lifestyle facility | Gooch & Housego (GHH LN) Solid Q1 trading plus earnings enhancing acquisition of StingRay Optics | NCC Group (NCC LN) Further issues in Assurance | PCI-PAL (PCIP LN) Strong H1 underpins positive outlook | UBM (UBM LN) Results | Verona Pharma (VRP LN) Phase IIa RPL554 add-on trial to tiotropium commenced
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Acceptance of all-cash offer by Kindred Group
23 Feb 17
32Red has agreed an all cash takeover by Kindred, at 196p per share. Together with an approved 4p dividend, this represents a 32.4% premium to last month’s average. This equates to 10.6x EV/EBITDA and 14.3x P/E for 2017, a small premium to the larger peer group. Given 32Red’s brand strength, regulated bias and growth momentum, this appears justified.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
Flying faster, higher, stronger
24 Feb 17
IAG released it FY results which were marked by a strong growth in profit after tax (+29%), despite the slight decrease in revenues (-2%). On top of the increasing dividend (FY: €0.235 per share), the company has announced a share buy-back of €500m to take place in 2017. The group also expects, as in 2016, operating profit growth in 2017.