Inditex S.A.

Industria de Diseno Textil Inditex is the parent company of a group engaged in apparel and footwear manufacturing and retailing. The Group is made up of fashion retail chains, textile manufacturing, purchasing and fabric treating companies, logistics and construction companies which are responsible for store refits and manufacturing structure. Products include men's, women's and children's wear collections, footwear, and women's lingerie which are sold through the Group's retail store chains of: Zara, Kiddy's Class, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, and Oysho and Zara Home.
  • TickerITX
  • ISINES0148396007
  • ExchangeMadrid Stock Exchange
  • SectorGeneral Retailers
  • CountrySpain

Analysts

Expert Corporate Governance Service (ECGS)

Inditex, 16 July 2019

In item 6.a, it is proposed to re-appoint the Chairman-CEO Mr. Pablo Isla Álvarez de Tejera. The positions of Chair and CEO will be formally separated after the AGM, through the appointment of Mr. Carlos Crespo González as new CEO (item 6.c). However, the roles of control and management will not be separated, as Mr. Isla will keep the position of executive Chairman. Therefore, we recommend opposition. In item 9, the Board proposes to approve a long-term incentive plan for the 2019-2022 period. The incentive will be paid 60% in shares and 40% in cash and capped at approximately 200% of executi...

Jelena Sokolova

Morningstar | Inditex 1Q Revenues Hit by Weather But Gross Margin Expands. Shares Attractive

We are reducing our fair value estimate for narrow-moat Inditex to EUR 29 per share as the firm reported first-quarter results, with weaker growth than our full-year expectations but a margin improvement. The reduction in fair value is largely because of our more cautious stance over the long-term growth rate (we are reducing our stage II growth rate to 6% from 8%) because growth from such a significant size would become more difficult, while the high rate of competitiveness in the apparel segment would limit pricing power. We still view shares as attractive at current levels. The store count...

Jelena Sokolova

Morningstar | Inditex 1Q Revenues Hit by Weather But Gross Margin Expands. Shares Attractive. See Updated Analyst Note from 12 Jun 2019

We are reducing our fair value estimate for narrow-moat Inditex to EUR 29 per share as the firm reported first-quarter results, with weaker growth than our full-year expectations but a margin improvement. The reduction in fair value is largely because of our more cautious stance over the long-term growth rate (we are reducing our stage II growth rate to 6% from 8%) because growth from such a significant size would become more difficult, while the high rate of competitiveness in the apparel segment would limit pricing power. We still view shares as attractive at current levels. The store count...

Jelena Sokolova

Inditex 1Q Revenues Hit by Weather But Gross Margin Expands. Shares Attractive

We are reducing our fair value estimate for narrow-moat Inditex to EUR 29 per share as the firm reported first-quarter results, with weaker growth than our full-year expectations but a margin improvement. The reduction in fair value is largely because of our more cautious stance over the long-term growth rate (we are reducing our stage II growth rate to 6% from 8%) because growth from such a significant size would become more difficult, while the high rate of competitiveness in the apparel segme...

Filipe Rosa

Inditex: The new normal

We expect ITX’s Q2 results (June 12) to again be weak, hampered by softer growth in clothing markets, a small deterioration of the expense ratio and a material increase in D&A. We forecast a 3.5% LfL, a 3% space input and a 0.5% FX tailwind, leading to sales growth of 7%. The weak LfL, namely for physical stores, should drive a 15bp YoY drop in the EBITDA margin despite a largely stable gross margin. The latter coupled with the higher D&A should lead to net income growth of just 4% YoY in Q1, which is well below the 11% growth forecast by BBG consensus. We would thus expect Q1 results to drive...

Jelena Sokolova

Morningstar | Inditex 1Q Revenues Hit by Weather But Gross Margin Expands. Shares Attractive

We are reducing our fair value estimate for narrow-moat Inditex to EUR 29 per share as the firm reported first-quarter results, with weaker growth than our full-year expectations but a margin improvement. The reduction in fair value is largely because of our more cautious stance over the long-term growth rate (we are reducing our stage II growth rate to 6% from 8%) because growth from such a significant size would become more difficult, while the high rate of competitiveness in the apparel segment would limit pricing power. We still view shares as attractive at current levels. The store count...

Jelena Sokolova

Morningstar | Inditex 1Q Revenues Hit by Weather But Gross Margin Expands. Shares Attractive. See Updated Analyst Note from 12 Jun 2019

We are reducing our fair value estimate for narrow-moat Inditex to EUR 29 per share as the firm reported first-quarter results, with weaker growth than our full-year expectations but a margin improvement. The reduction in fair value is largely because of our more cautious stance over the long-term growth rate (we are reducing our stage II growth rate to 6% from 8%) because growth from such a significant size would become more difficult, while the high rate of competitiveness in the apparel segment would limit pricing power. We still view shares as attractive at current levels. The store count...

Jelena Sokolova

Inditex 1Q Revenues Hit by Weather But Gross Margin Expands. Shares Attractive

We are reducing our fair value estimate for narrow-moat Inditex to EUR 29 per share as the firm reported first-quarter results, with weaker growth than our full-year expectations but a margin improvement. The reduction in fair value is largely because of our more cautious stance over the long-term growth rate (we are reducing our stage II growth rate to 6% from 8%) because growth from such a significant size would become more difficult, while the high rate of competitiveness in the apparel segme...

Filipe Rosa

Inditex: The new normal

We expect ITX’s Q2 results (June 12) to again be weak, hampered by softer growth in clothing markets, a small deterioration of the expense ratio and a material increase in D&A. We forecast a 3.5% LfL, a 3% space input and a 0.5% FX tailwind, leading to sales growth of 7%. The weak LfL, namely for physical stores, should drive a 15bp YoY drop in the EBITDA margin despite a largely stable gross margin. The latter coupled with the higher D&A should lead to net income growth of just 4% YoY in Q1, which is well below the 11% growth forecast by BBG consensus. We would thus expect Q1 results to drive...

Jelena Sokolova

Morningstar | Inditex's Revenue in Line With Expectations, but Profit Lower; Maintaining FVE

We are maintaining our fair value estimate of EUR 31 per share for narrow-moat Inditex as the company delivered lower-than-expected profits for 2018. Revenue was in line with our expectations while operating profit was 5% lower than we anticipated, largely driven by higher depreciation and amortization charges than we expected. Operating expenses, which include rental, employee, and other (related to online), increased 4%, in line with our expectations. Out of these, personnel expenses grew 4%, and rental expenses grew only 1% despite net space growth of 4.7%, showing good cost control and lea...

1 director maiden bought

A director at Industria De Diseno Textil Sa maiden bought 4,000 shares at 26.660EUR and the significance rating of the trade was 74/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rule...

INDITEX SA sees an upgrade to Slightly Positive due to a better fundamental star rating

The general evaluation of INDITEX SA (ES), a company active in the Apparel Retailers industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date March 22, 2019, the closing price was EUR 26.27 and its potential was estimated at EUR 28.49.

Ng Adrian

Inditex

Ng Adrian

Inditex

Ng Adrian

Inditex

Ng Adrian

Inditex

MarketLine Department

Esprit Holdings Limited - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments

Summary Marketline's Esprit Holdings Limited Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by Esprit Holdings Limited since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive adv...

Expert Corporate Governance Service (ECGS)

Inditex, 16 July 2019

In item 6.a, it is proposed to re-appoint the Chairman-CEO Mr. Pablo Isla Álvarez de Tejera. The positions of Chair and CEO will be formally separated after the AGM, through the appointment of Mr. Carlos Crespo González as new CEO (item 6.c). However, the roles of control and management will not be separated, as Mr. Isla will keep the position of executive Chairman. Therefore, we recommend opposition. In item 9, the Board proposes to approve a long-term incentive plan for the 2019-2022 period. The incentive will be paid 60% in shares and 40% in cash and capped at approximately 200% of executi...

Inditex – Proxinvest Corporate Governance Rating ® : C

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

Expert Corporate Governance Service (ECGS)

proxy report 18/07/2018

In item 4.b, the Board proposes to appoint Ms. Pilar López Álvarez, Chairwoman of Microsoft Spain, as independent non-executive Director. The appointment of Ms. López Álvarez will improve the independence (from 44% to 56%) and the gender diversity (from 22% to 33%). Also taking into account her professional background and aggregate time commitments, we recommend that shareholders approve her appointment for the statutory term of 4 years. In item 5, shareholders are called to a binding vote on the remuneration policy to be adopted in the 2019-2021 period. The variable remuneration components a...

Expert Corporate Governance Service (ECGS)

Etude l' AG du 19/07/2017

In item 4, the Board proposes to re-appoint Mr. José Arnau Sierra as "proprietary Director" representing the controlling shareholder Mr. Amancio Ortega Gaona (59.3% of the share capital). Mr. Arnau Sierra is the non-executive Vice Chairman of the Board and he is a member of all internal Committees. We have serious concerns over the composition of the Board of Directors, as the positions of Chairman and CEO are combined and the Board has not a majority of independent members (44% according to the Company and the ECGS guidelines). Therefore, we recommend opposition.In item 6, shareholders are ca...

Valérie GASTALDY

Analyse court terme - INDITEX : Stochastiques en zone de surachat.

La tendance est baissière. La reprise est une consolidation. Les Stochastiques sont en zone de surachat. La baisse peut bientôt reprendre vers 23,65 €. La tendance de fond serait remise en cause en cas de franchissement de 29,86 €.

Valérie GASTALDY

Short term view - INDITEX : Overbought stochastics

The trend is bearish. The recovery is a consolidation. Stochastics are at the overbought level. The fall can soon resume toward €23.65. The background trend would be questioned should prices rise above €29.86.

Valérie GASTALDY

Short term view - INDITEX : Falling prices.

The background trend is clearly bearish. Prices are falling again, but the movement has become hesitant. The next support is at €24.00. The background trend would be questioned should prices rise above €30.30.

Valérie GASTALDY

Analyse court terme - INDITEX : Les prix baissent.

La tendance de fond est clairement orientée à la baisse. Les prix baissent à nouveau, mais le mouvement est devenu hésitant. Le prochain support est à 24,00 €. La tendance de fond serait remise en cause en cas de franchissement de 30,30 €.

Valérie GASTALDY

Analyse moyen terme - INDITEX : Le mouvement se poursuit.

La tendance de fond est clairement orientée à la baisse. Le mouvement se poursuit. Le prochain objectif est à 24,00 €, puis 21,98 €. Le franchissement de 30,30 € remettrait en cause la suite de la baisse.

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