IDEXY - Earnings call transcript Q4 2021 | Industria de Diseño Textil, S.A.

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Marcos López

Good morning, ladies and gentlemen. Welcome to the presentation of Inditex’s results for 2021. I am Marcos López, Capital Markets Director.

Here today with us are Inditex’s Executive Chairman, Pablo Isla; our CEO, Oscar Garcia Maceiras; and our CFO, Ignacio Fernández.

As usual, the presentation will be followed by a Q&A session, starting with the questions received on the telephone, and then those received through the webcast platform.

will disclaimer we read. start, we take as the Before over I’ll you Pablo. now hand to

Pablo Isla

Good all words morning welcome Marcos. in you, Thank to XXXX affected the presentation. Ukraine. those to of results My for first are by conflict our and you,

countries. and about people and recognize Our an before go the on year thoughts different our highlight to of analysis integrated accelerating. with to changing Inditex’s by would each at conditions individual functions, all Their made towards period. effort times. results into to this I challenging concepts quality XXXX It the ground. these like are and their I today a of transformation some adapt teams and fully the sympathy every to entrepreneurial there the their key sustainable want across been the model due messages that dedication we and and capacity teams Inditex outstanding spirit. to the due our during their differentiation present We is can is strategic business only to digital and has commitment,

online. Let me we have and business model total that that fully tell the store in our integrates confidence you unique

Our has very operating been performance strong. in XXXX

generated resounding very a been success. Our collections and in Online cash is the sales financial group. The continued and The strong customers. position store plan flow the been robust getting store sales received see have well back by are optimization normal. that stages We of growth. to its has reinforced to final

attractive shareholder And with very opportunities. predictable we and to see continue We policy. continue strong growth remuneration our

which a a The by attractiveness of XXXX, greatly but affected was fully was it in position of the still proposing per business bonus Board higher share Board and single share, by XXXX is our the The outstanding XXXX, performance dividend COVID-XX. increase the of proposing integrated of product is XX%. than model, in €X.XX our XX% €X.XX for helped dividend inventory XXXX. offer, also an For represents per

and is since €X.X €X.X Free at indeed have followers to to our The to have in billion flows Let me of XXXX. remarkable billion XXXX It XXX% XXXX versus XX% the XX.X% reached billion compares sales cover of to sign billion historic were X% users Online income of of plus year continued group the growth. XXXX, to versus XXXX. at the grew the grow compared are highest They been Net historic sales. €X.X Online currency, last in constant model gross year XX% provide in than cash online XXXX. that reached X plus continued strong and for Online XXXX in solid sales pre-COVID year-end. This future of base highs. saw progressed headline now strong. higher €X.X very execution accelerate. currencies social highs. XXXX. The sales visits, margin especially Inditex continue into cash XXX% trajectory In a strongly cash Net for sales. reached media sales business app flow was accounted in has last achieved nicely and years. billion, €X.X constant up we that year numbers. the In

details sales section. online to over result, a hand now of I Ignacio As financial in you of accounted will the XX.X% group the sales for XXXX. for

Ignacio Fernández

you, Pablo. Thank

has sales flow manage and a managed. store headline online generation. continued numbers. as strong strong in XXXX. resounding The in optimization release, to has and a progressed this XXXX very to cash XX% of store deal program a The gross good The in in and XX%, in of very grew resulted half Sales has and We over Inditex our been [indiscernible] a in trends be strongly accelerating environment. already. model normal The course, recovered out improve announced result over sales table the business store Operating Store performance. XXXX the June constant tightly in is XXXX. Sales performance. have currency of the a has, strong expenses margin sustained recovery in fully online both XXXX shows operations been seen tightly been absorption has a seen have to the second success. challenging versus you the return operating XXXX impact by As very program turn

Let the with the store quarters second is historic XXXX to business detail by the proving to of stores XXXX, still with store a and of of on XX% XXXX, resounding net quarter the In trading remarkable due has progressive first restrictions, healthy of With persisted That our the a especially the optimization environment performance XX% hours that compared this. and Integration sales in XXXX. is some feasibility productivity of that third sales levels me sales performance defined increased model to beginning quarter the the in a our in the and the XXXX, in was success. service of unavailable trading to the add normalization at and the less third normalized improved highs. It of store more income sales, been performance operation, program sales. markedly record PBT key online fourth reached quarter growth. due

spread Christmas part the year the final significantly of impacted by was period. of the over However, variant Omicron the the

from March were to this returning the and the With of Omicron points Federation approximately percentage period, of February historic of variant sales spring In in positive restrictions, Ukraine online represented end the and growth. the XXXX. sales XXXX the X Xst of sales the patterns. XX% start the in recovery constant Store the and above XX% the highs and Russian the decreases previous the of of of to above cases XXXX currency the in XXth

X and positive of restriction a final outbreak the and in as Netherlands, quarter total in-store Philippines. in million. variant Japan, the XXXX part result information, to have €X.X the Omicron stable evolution reflects of main run XXXX. and period approximately of Operating level mentioned, flexibility one-off by impact €XXX across traffic most incremental expenses adapt the operating departments sales enjoyed us the linked gross plus/minus trading There XX in the components online Omicron very on impacted season reached profit can over Sales optimization linked to results margin store control Spain. sales. basis to program abating expenses reached geographic high quarter to chain. XX.X%. was costs margin approximately XXX lockdowns on been expenses million. was with business in be for evolution The XXXX, high over and margin period. X% the by Inditex €XXX shown billion, provision model Inditex highest the well good and for difference we environment. same to fluctuation in all impact working higher the significantly period The over Germany, due area the XXXX the gross basis expenses has and period. on our the and strongly this than have and It the gross due This the in management markets, gross of flexibility levels in As to is gains due and of Christmas year have fourth closures to The its sales With below was spread performance and expects increased gross by The store Based The currency expenses the to [sustain] the changing The the additional China the in areas. the States the of over to Depreciation, year a of Austria associated expenses first our largest XXXX, clearly to the of the supply demonstrated XXXX, seen markdowns XXXX. Inditex store grew the reflects a current increased million. previous years. the In XXXX unique approximately became The patterns. temporary accounts. points came our returned XXXX of allowed margin of operating was business for lower. after operating to full of In react impact a timing capital very for the restrictions. performance. to efficient has United The single the this points amortization of ability was charged decrease €XXX Efficiency in the XXXX, market operating

seen face in working the of commitment inventory you has prior to the can this low availability spring the to €X.X due As operation flows can the has operation after from was order this, billion. billion, Inventory possible unusually funds high We to season to product in increase high is feel strong Closing first assumes of billion. the end level the you strong the inventory quality. to cash in supply decided COVID-XX. all for the update. of quarter normal cash flow conjunction see beginning net pandemic. chain With alternate of This trading accelerate tensions. reflected the to quality XXXX The with lease inventory see in returned levels with of position the was levels. Inditex payments at with comfortable is from cash cash in to capital table, was fixed €X.X inventory and €X.X XXXX the of

over to Marcos. recorded. We are already levels above now, XXXX And

Marcos López

can This which seen XXXX, different period. Thank the weight have remains in be the markets of have XX expanding on operations. The in stores unchanged. group our sales we practically you. we opened different over the Over continued concepts

geographic despite a location all performance individual sales, Oscar. of is recovery across XX% remarkable as the to strong the in continue We It business a Store had percentage before Stradivarius, profit concepts sales that concepts. of the now, to particularly this relate are progressive performance. profile the Pull&Bear are of improving COVID. The generated that stores a presence, of and in It concept. And tax exceeding to XXXX is XXXX. underpins differences and the seeing grow. and Oysho over all each strong online model sales impact fashion

Oscar Garcia Maceiras

sustainability. it always Marcos. Inditex you, lead comes take the Thank has tried to when to

by of used how with this fibers of for the all of these achievable. of a now products XX% see of regards for you You end end approved to cellulosic the set the delivery facilities pack; some with pleased sustainable as key by of sustainable of Life even XX%. have that see XXX% ahead own here. energy in year, sustainable. in successfully some make to to are figure development. XXX% also target to continues cases, in that comfortably last the that are have XXX% our exceeding can chain, of milestones. on target reuse By important July the to at now we XXX% materials plastic; stood use use progress be Having can the Join we targets supply make well say of single-use products of XXXX were by Inditex to in more this few sustainable XXXX in at exceeding of part XXXX. the XXXX, in XX% demanding confidence is met our of very schedule good all at XXXX XXX% collected our Likewise, We recycling inform of the the achieved renewable We of packaging of or fibers; year, highlight Green cotton. following free objectives targets more track AGM its we for can of we and

These recycled XXXX. cut supply water in on for also or technologies to our a the established in and up two a sustainable and chain means as existing field XXX% are key track We in Innovation the are In set ones. linen usage the of achieve Sustainability to scale of polyester, by have new we and to which drive Hub innovation XX%. promote drive objectives sustainability,

certainly world consistently fibers highlighting the feature as have in with specialized up to This efforts projects are top-rated in of in is was Jones Index. that carbon. generating make the for retailers from is been only the the for a has and very X first proud FTSEXGood This and running start-up the case well Index and launched. companies that the the Dow in in a as top XXX prestigious sustainable capture Knights’ Seal. Zara worth XX polyester most are the being We it’s global be years. of already. reality it to able now X fashion Furthermore, than project in Terra Lanzatech Sustainability retailer working many fashion companies as XXX pilot more this the included derived pilot company have that to Inditex Carta the we sustainability, only to Confirming Corporate order our say

We Inditex. is with in collection, Kids art and XXXX for Zara a Embroidery unique spring start collections can outdoor tones editorial, Stradivarius and collection. and start hello Also, Dutti features features. Spring/Summer outlook start online the A of limited integrated the Bershka place fabrics. land particular, Colours. execution. of Zara Man to over about with our old Oysho’s the capsule. editorial. talk about the patterns living good the with Let’s Zara abstract to highly detailed Zara the fashion our bright collection, collection store Massimo Pull&Bear technical training Home The editorial and XX.XX capsule

to continue differentiated We our make than stores more ever.

February; in you April I can Tokyo, in for Stradivarius Al recent España, new With refurbishment X,XXX the at projects Europe see Dubai square in the at in Zara Mall largest Madrid’s with strongest Yas like stores of of in one As renovation are at finally, districts traffic Zara urban store and the in month; in of meter highlight this Zara opening location Hills, the Plaza the of examples de end the the Dhabi of opened world. Ginza at one which Abu in the years. and would stores to an Zara open at in of to

are XXX,XXX Inditex. meters. stores This enjoy at of you square model that long-term Zara We Inditex’s pursuit new of online. of today continuity feature headquarters of integrates its continues fully to one for message We be business of is to a planning goals. unique the core a and also My

matched at potential. our that of the me is in competitive here level that only we always be of teams talent an these It Let these of all the of are will at tell development by commitment. you advantage. Inditex teams of the case stage early people remain our exciting The main

the and of remain times managed core already the we and we recent above strategy. As also a are company, Sustainability that digitalization have well. market some in difficult levels illustrated fact prepandemic conditions our at this

newer digital to roll invest with We remuneration to Inditex the priorities provide policy. key reiterate shareholders of business we maximize stores focus unique continue growth. is shareholders, customer in the model in are [indiscernible]. profitable will very aim differentiation goal focus like to achieve Stable for Furthermore, group. fully who a a they developing predictable of forget, experience. out our Don’t will attractive integrated would main the and The well order and the future so be as our those is online a to objectives key I high-quality and been to these long-term always with long-term our organic as our strategic drive for For as that integrated to increase a fully store strategy. the margins A that is always strengthen we model. with much priority to continue initiatives plan sustainability these central key dividend us. its to on global of continues has part gross order growth

our is not We are impact applying trading can Spring/Summer from to collections. you update. see mid-single-digit our This as negative volumes, on having price increases a

in invest returns business, intensity capital deliver going lower and forward. to continue higher the to we As we expect

billion expenditure will recent for We strength has times. digitalization of The €X.X XXXX, differentiation, clear and integrated model been which of drive business fully in sustainability. expect the capital

€X.XX dividend now than As equal of XX% It’s of part of of higher AGM by share, this, dividend Board payments. composed a Directors online made will €X.XX group of of expects an and to ordinary propose Inditex’s per will two of sales dividend Inditex The in dividend XX% sales to of XXXX. bonus a the up be XXXX. per exceed €X.XX share.

dividend on November bonus Directors of and Board €X.XX, €X.XXX AGM €X.XXX, payment composed payment payout per place. per policy of On XXXX ordinary XXXX, bonus. the the is of proposing remains of Inditex’s the of and XX% share, total a of May of share X.X relation also €X.XXX dividends paid Xnd bonus Xnd -- ordinary, of dividend ordinary; XXXX, in a results. in be the to The €X.XX to share to of per a

this very of Store from strong we XXXX. release, XXth of concludes percentage Thank presentation sales February in for for in had currency XXXX above sales In in XX% and highs Ukraine our approximately today. have March of of to above Russian constant were to the the online Federation you Xst As seen period, you our growth. a sales XXXX. and have That start X XX% historic the points represented and pre-COVID attending.

to happy you any be may questions will answer have. We

Marcos López

operator, Please, go ahead.

Operator

[Operator Instructions] Adam is we Cochrane Bank. Our first question Unfortunately, can’t from from hear at anything Deutsche line. Adam’s

getting move anything from line either. So Chauvet we’ll we’re not Citi. to from Unfortunately, Thomas Thomas’

from whilst Mariani can the Elena, patience. question to your for will Morgan Your by order. is move stand we you Stanley. confirm Please line Thank hear open. we So, Elena you me?

patience. Okay. for your Thank you

again try will once more Stanley. Morgan from We Elena with

Elena Mariani

Can now? you hear me

Operator

hear we Yes, you. can

Elena Mariani

Fantastic. Okay.

to So my with going start questions. I’m

parts The first your the moving one guidance. on is on gross margin

you that cost very having in ‘XX. margin we that any an How favorable moving question understand So about digit. terms You’ve sure, have could that the stable Are of guidance environment? this be in mid-single return second thinking the effect, in Russia. think a impact? you about is about my little inflation, should help great. environment, broadly And remain markdowns mix you indicated in these which expect given been XXXX like price year then full market bit that you better has kindly the underlying is price would how So current fiscal gross if us to factoring quantified i.e., particularly for parts, of context you’re

But can kindly impact store remain about Are to should on somehow are the from on their also this? an a closures net-net EBIT. assuming business understand offsetting your about you So how X.X% how EBIT the think indicated that and stores in think Russian your contribution EBIT memory, of ‘XX? from could you mid-single-digit impact think going the the impact X.X% also have closures, we the we Should closed if below margin? year on for you about us full fiscal year? to effect and about store help be -- to So these

Marcos López

regarding question gross the margin. first The

I think we that the we expect gross have sense given quite broadly a explicit margin. guidance stable in

that moving coming for work minus/plus know despite gross last quite to margin achieved we regarding you basis can give clear I think remark year points for quite, a gross You this us key in But workforce that And parts, strong. try different been stability. the to on year. XX factors of years, that number the has the margin the always I means think highest was we very the X

price way, price do important our we why of is where in focused increases It margins. product, we that being in across experienced our us, this preserve cost is that are selective customers. This for not depreciation, ranges, position And the and It that something is we to clearly, talking is idea the are always type significant the this currency stability, have right? to a going board. be there we For do and digit, clear mid-single significant protect markets very, inflation, those will work will very to very on we in on of those market. a is year so

make point regarding I inventory. like would is second The to

due abnormally the beginning year. low And account we low have the of that at -- we Bear mentioned You have in of with that COVID-XX high this is much the this that healthy is in at stage. line XX% situation. comparable a taking quality. -- strong distorted very, to trading position last levels into by was very year update inventory of inventory very the the inventory mind The

So add are seeing and something. in particular anything not let clearly, there we me

chain. any little to tension the flows in avoid supply a to possible accelerated inventory have just try We bit

I And well what’s inventory below quality we’re coming. update trading growth the stocked XX%. of for So with is clearly high as mentioned,

feel we So comfortable. very very,

you that your comments think you’ve within explained everything I made. comments, the Russia, practically Regarding

how key not to the in said provided market stage, are thoughts now. regarding to clearly, -- can prefer of to this support what terms and and lot have of EBIT growth We in them, as we well, X you would right our And we update. information teams of add our in our the there, of with imagine, the percentage represent and them, points trading at that this Russia a terms anything focus, Ukraine have

Operator

from question next Our from comes Adam Deutsche Bank. Cochrane

Adam Cochrane

price these again. And giving special the of what’s And other price this And rest of want as can increases, of with your the price relative terms Last position the through that around, multiyear comments dependent through in in conditions, dividend. your Try to to passing that wouldn’t the increases terms increases? as then change you the the about did you upon market in secondly, well, time retailers? price market special is pass you you dividend. confidence a

this in in will change year just terms uncertainty around. to multiyear and Is current or forward of time that future? policy you a one In maybe X is doing get due a the the

Marcos López

as of increase carefully. year, of having you this Regarding no terms as the implemented positioning and policy have you update prices very imagine, impact all, the growth. [studied] that our can position the this -- in we of in -- our is This by we market, trading reflected mid-single-digit to having XX% at volumes something as clearly is see

Pablo So special something, And by regarding see that well I It’s is would the material. I It’s by of no board. section, type product. by very dividend, family, think has And thought. to... this like across been the very, not as mentioned, is reception can you very the

Pablo Isla

what thought that I the going of better the the be about has remaining be was precise very that then -- decided this XXXX. first all, a extraordinary dividend extraordinary to well, results. dividend, of what was first year part previous that it the the better instead tell what X it has for for course, thought to of Board -- against would the special to dividend extraordinary was And -- years the period has XXXX that of regarding Board the Yes, of distributed, without you the complete figure dividend specifying global year year the is is well, giving a Board all,

approach XXXX. reiterating the of the XX% And same extraordinary dividends. time, payout visibility is the to and you for be going of year plus at the extraordinary full course, So dividend investors what ratio giving the about

preferred has it So been for very, XXXX. year the the very be precise to about extraordinary

Adam Cochrane

price those already -- mid-single on digit you’re need year? do to the has for saying you increases, So put that’s and been this through that already all you’ve

Pablo Isla

we... Well,

Adam Cochrane

No further price increases coming?

Marcos López

Spring/Summer increase. is for have is mid-single-digit plan impact mentioned implemented sales there this of that I as update already we And we shown What plus season, by trading no implement we this to on -- volume -- XX%. have the

Operator

The next comes Societe Critchlow question Anne from Generale. from

Anne Critchlow

as than because on looks it expected online as store easier example, should was It the Omicron’s fourth the declined slowdown quarter total online Are was year sales the returns perhaps looks a prior of? if from much were it slightly comparative locations. sales online explanations despite For the despite impact in And higher physical for any online aware also canceled? there worse events be sales. rates if we

Marcos López

I think X comments there.

the The one you right? can is comp quarter first That’s that the reason. XXXX, imagine, over fourth first tremendous, the was

store that given for in mind quantified have This is very the from like possible we why number or notes, The the not expenses. in incremental in is additional return and a key in online But we to were sudden offer due pleased that to online. to coming there stores. clearly factors was the of click Omicron were collect drop have you we operating markets, bear costs X that. reason mentioned second in traffic, costs We with that some

there. So nothing material

XX% €X.X to was We provided billion. year, very guidance. Last it have online We see growing strongly.

sales to of online XX% expect by exceed XXXX. We

very, online healthy and remains unique the very way. a margins Then, So remember in same online obtained online is fully stores. that the very that store X the are same model much we in the are in everything, factors. obtain The our we integrated

we apart integrated So strong profitability. growth, fully leading this operation. And it’s a from clearly, very have

business scale this very we in a very, way. . So can healthy

Anne Critchlow

Could the have period, you trading if strong sales current growth online a please? seen I ask in acceleration in

Marcos López

that has our We back to Once have normal have go Omicron normal. very we operations the patterns a seen abated, seen the evolution. in

Operator

next from from Santander. The McClellan comes question Rebecca

Rebecca McClellan

A couple of questions, please.

markets the that Ukraine? the of as much of million give how terms trends -- versus you’re neighboring as is secondly, quarter you can any and what versus associated fourth mismatch seeing cost of in in in of -- cost with and sales a Omicron, of incremental deceleration around cost us a Russia traffic? Firstly, the idea sort they extra And €XXX

Marcos López

Yes.

And explanation is see question detailed And that effect The secondly, because we click think many regarding regarding a restrictions, and gross caught have that, markdowns. the small okay? what in we impact coming diluted provided rates that stores could normal this the a right and temporary question, had will reinforcement -- then has markets, And And stores, incremental be a not first we plus fact is closures fourth very up -- your markets. regarding those expenses, of the collect we have a just sales have and period traffic. we Christmas with very lower over from experienced what you This see growth strong now, The in in from mentioned had we operating available is that number, the margin. our second had basically the to one-off Omicron. had return I evolution expenses obviously, that in mentioned we online that clearly the some coming before is for trading usual we the which the had in we -- store this diluted update were volume previous [indiscernible] higher we immediately. be not quarter the online very that of

Operator

comes question next HSBC. from Rossington Paul at Our

Paul Rossington

any be trading, you space comment current full whether there’s is that trading the impact to from neutral the know year, question of to not? In a there over if space contribution on but or context number you current the wondering me, please. you One expect I just on can number? the said that

Marcos López

space to going is contribution year. neutral As we very this be mentioned,

plan. have finished store the We practically optimization

can basically, So that comparable. fully it’s you assume

Operator

comes from Our next from Morgan. question JP Georgina Johanan

Georgina Johanan

questions, apologies off please, few I a briefly. and have I dropped

already this if So been has answered. apologies

first just so Thanks around The the far. was for information Russia. really you’ve shared

not Just was support providing you to And referenced first would understand, made. coming sure statement if ongoing in region? should from short-term question, I’m that payments we original be I is That that rental loss for to need some you your my be that some there expect please. some know staff.

was you’ve one broadly profitability. to should second in outlook versus The note gross if COVID how gross I profitability And stable increased to it’s sure then of margin I’m OpEx. could please? that XXXX referenced for much clarify for just or modeling that around Do you where back us base need know margin. XXXX to we guided the forward. the Russia, base just for slide, was a help comes going And higher comment? any we not through a for in that for adjustment you there your what be the on [indiscernible] finally, that wondered factor I thinking

Marcos López

the factors are gross margin, the have with guidance all provided, included. Regarding any -- we the

Regarding -- mentioned coming any we now, is investment cost OpEx material. is not as relatively you from will add-on we the in is tell or not country Right notes, in Russia, special would or be low. Inventory our investments significant.

have So gross there do won’t that we as market will be to right? clearly anything But prefer at very obviously, to are on feel the And moment. mentioned, significant. margins force we Again, not we whatever our anything there, healthy. support work needed very, I this that is

much in X operations. achieved we in in years, is year, and funds from cash margin last see, this gross in very the from flow, reflected the You cash and the operations highest the

in just the I numbers, that XXXX trading comparison. take for and And would very see base have both update, been as to . mention, can solid, is can we has as on you management you which I and a This very to XXXX why are very, healthy. the You model much both very, adjust future. inventory provided very

Operator

from from next Our RBC. Richard question Chamberlain comes

Richard Chamberlain

then affecting could anything And you What if please. me, seeing or Were year-end, guys give supply chain of the of an China capital the there? any comment in one-off in year. wondered charge any second, additional I restrictions renewed the on can any Omicron from there are the that light or at impairments like And things of for charge you sales? update gains you depreciation Couple terms Please, constraints? on effects that?

Marcos López

-- includes right? much very difference, what to. well, by Regarding your comp that is second I’m question, know depreciation you referring XXXX. affected in the the That’s Remember

So short to extend markets, time. I’m not about of would I that. terms And in talk not of to prefer period a going

think have of for become is the something trading we’ve as we in is remarkable sales. that the well States largest go update And . the think at Spain. is Inditex right we is very there season. distribution geographical we provided seen far clearly, But after this encompasses have I second the that beginning the the United Clearly, I provided market like that to of would a has now. XXXX, that performance as

Richard Chamberlain

you talk if that’s though. Fine. far? guess in performance Asia overall, Okay. QX about it as recovering so so presumably reflected Is the I .

Marcos López

flow restrictions And I mentioned is number can that. What trying given this as we retailer, sales one-offs the our business strong think, and tell achieved encourages long of market, flow, attention of geographies. the again in much concepts XX% cash manage you we strong the trading very getting historical quite we face that beginning update this at know, on the generation priority. there cash I mean, very We I Well, last weight that for your And to I have of the the a consistent to is relevant, the beginning year funds on situations you have on of the think is we remarkable. and much XXXX, is extremely This always -- the update I right? of as to and of I the a this remains year high, per your And depends different of very, term. But we using trading that different on draw you on think would how been focus season, have XXXX. the situation we’re the think that last enjoy XX% to season. very the that year on just markets. the a

Operator

from question comes from James Grzinic Next Jefferies.

James Grzinic

what perhaps update just Spring/Summer ranges? that, you to single growth out trading, done has Autumn/Winter you you later Can one. a Can clarify relative reflect current that also that trading proper that please? on current Quick of provided perhaps doesn’t the clearance

Marcos López

that no as things. Clearly, to our open sure there supply some has made this in effort not are of chain. year, chain an XX% differences is are There very -- of been key XX% product always our anything read would proximity wouldn’t of The for have anything very, highs it are is a tensions historic a read XXXX. factor And update every above in This trading we but inflows supply to factors, remains I And be differential accelerate in strong. all forever. of specific. case No, specific. the Inditex. I the It’s number pre-COVID is the there calendar,

nothing James. So No. material,

James Grzinic

Okay.

just as in is Spring/Summer it? of underlying mind proper to that Marcos, confirm currently seeing you’re So demand indicative your

Marcos López

same. We approach No. what customer Basically, offer to try the the is customer wants. our the

We’re to anything. trying anticipate not

respond demand do market anticipate proximity basically needs. So to what our This to we the is don’t with something market that is or model. do. not We the we

-- trading position this of stock healthy update. Our very our is and is in quality, is the very, inventory and high reflected

and very, So the season. start healthy of very strong

Operator

over via hand I the webcast. for will questions now any

James O’Shaughnessy

first today. number flow which cash had questions on of And the a XXXX performance? give of the some you We’ve please platform on the could webcast color is,

Marcos López

more I provided both is Well, and management free €X.X our cash. we from have have budgets working given inflow -- factors stressed the And as €X the and strong differentiated, investments working in of the billion. to one we capital capital flow some The billion again, situation, is we think make and stronger the business this generated XXXX that with flow reached Oscar cash management of make has following €X.X has the the cash well, billion achieved an one cash well. top operations, that of Pablo results. And

of quarters, significant see is COVID in business is flow to health. the of of in way this difficult very, you company cash a couple the health see that but think year very the affecting good with the the still a a I

James O’Shaughnessy

question second The relates to space contribution.

You you you please? going neutral guided about see how for talk a bit space contribution. space more forward, Can little

Marcos López

there. Yes, probably comments number a of

something X% been This store very, optimization we year, have very The first clear. program less achieved with is is XX% success, has that one the it’s a resounding stores. that constant currency growth sales

that well. very, initiatives almost have we finished. place that working in So proves It’s strategic very the are

absorptions, contribution So the to been very our it this refurbishments neutral will opinion, will obviously, be there in but a strong has this And in business. expect performance some year, over the as like-for-like previous the years. a we case revert, and

James O’Shaughnessy

currency sales. to The relates next question constant

XX% Can especially currency performance, constant and versus strong QX. were despite the having Your on give sales fewer of more COVID, please? stores you QX X% this in color some up XXXX, with to impact contend and

Oscar Garcia Maceiras

optimization reasonable conjunction ever implementation last conclusion differentiation the competitive the the between the the XXXX, in and of with It and is the with have XXXX, and it’s key strategic new Inditex that the large X rollout is platform, as initiatives you growth. the has retail been? of of since as given industry reach we transformation the to as since strategic projects, our differentiation Well, over execution open driving think program, know, of that already gone the conclusion business I is the the sales years us it together that through healthy model [SINT] the

James O’Shaughnessy

questions. Thank webcast That you. the concludes

Marcos López

very much. Thank you

of see hand call. to open have or -- regarding Oscar a that results. I’ll the over this few And you closing for may will we to are We remain questions these

Oscar Garcia Maceiras

in of to all you participating this presentation. Thanks

Markets will may you results. questions the quarter very Thank in our additional June for we any contact you back please Department, you ‘XX and have, welcome For Capital much. first

Industria de Diseño Textil (IDEXY) 16 Mar 222021 Q4 Earnings call transcript