INDITEX

Analysis of Inditex share price

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In the textile industry, check out the Spanish group Inditex, its specificities and some historical data concerning the analysis of its price.

Latest news

Inditex: strong performance in Q1 of fiscal year 2020-2021

02/07/2021 - 08h08

The Inditex Group has a wind energy production project that will ensure energy sustainability in the sector. It is performing very well in the first quarter.

Elements that can influence the price of this asset:

Analysis N°1

With regard to the opportunities that the Inditex group could seize, among other things, is its increasingly strong presence in emerging markets such as India and Asia more generally.

Analysis N°2

The fact that Inditex produces products with affordable purchase prices should enable it to withstand the crisis well and retain a loyal customer base.

Analysis N°3

In addition, the group is constantly renewing itself and follows a growth and development strategy with the opening of two new stores every day, which is guaranteed additional income.

Analysis N°4

Regarding the threats to this group, again the high cost of production should be highlighted which could be passed on in the long term to selling prices and make the company less competitive.

Analysis N°5

The budgets devoted to the group's communication should also be increased for better visibility. However, this is not provided in the group's medium and long term strategy.

Analysis N°6

Finally, the Inditex group also shows weaknesses with regard to the distribution and marketing of products.

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General presentation of Inditex

Inditex (Industria de Diseño Textil) is a Spanish group specializing in textile manufacturing, production and marketing of clothing and accessories. But its activity is divided into several sectors, the main one being clothing, then lingerie items, shoes, accessories and also household items. Among other things, it supplies networks like Zara or Bershka.

The majority of its turnover is achieved in Europe with Spain in the lead, but also in America and a little elsewhere in the world.

Analysis of Inditex share price
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The major competitors of Inditex

In order to carry out a good analysis of the Inditex share price, you must first of all have a thorough knowledge of this company and its direct economic environment. This is why we are now proposing to find out who its main competitors in this market are.

LVMH

First of all, we will follow the French group LVMH, which is currently the world leader in the luxury industry in terms of turnover and which was created by the merger in 1987 of the companies Moët Hennessy and Louis Vuitton.

Benetton

The Benetton group is also a competitor of Inditex. It was founded in 1965 in Italy and specialises in fashion and clothing with more than 150 million garments produced per year and a network of 65,000 sales outlets in more than 120 countries. The group is owned by the Benetton family's financial company, Edizione Sarl, which holds 67% of the company's shares.

Burberry

This other company, which was once a British tailor specialising in men's coats and mackintoshes, is now another of the world's leading luxury clothing companies. The group produces mainly in China and is developing a network of franchise shops around the world.Pentland

Etam

Finally, the last serious competitor to Inditex is the Etam group which is a French holding company created in the 20th century and which was listed on the Paris Stock Exchange until 2017. The group was created by the merger in 1958 of Etam, a company founded in 1916 in Germany, and Setamil, a manufacturer of cheesecloth founded in 1925. Thanks to its various brands, including Etam and Undiz, the group has developed rapidly and has established itself in more than 55 countries.


The major partners of Inditex

Redcats

In 2009, Redcats signed a partnership with Inditex and its Zara Home brand. La Redoute and Ellos, brands of Redcats Group, enhance their "Home" collections with the creation of a shop in shop on their e-commerce websites dedicated to the Zara Home brand, in France for La Redoute and in the Nordic countries for Ellos.

Tata

The Spanish ready-to-wear giant Inditex signed a joint venture agreement with the Indian conglomerate Tata that same year to launch its flagship brand to conquer the subcontinent in 2010. Inditex holds 51% of the capital and Trent Limited, a company of the Tata group, the remaining 49%. The company plans to open the first stores in New Delhi and Bombay. Asia is a key continent for the development of the Spanish group, but Inditex has only been established in Japan, China and South Korea until now.

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The factors in favour of a rise in the Inditex share price:

Among the main strengths of this company is the quality and relevance of the results published in recent years. Inditex is showing a significant and steady increase in turnover for some time, which tends to reassure investors. The group's growth is also high and in the double digits, which is a real achievement for this highly competitive sector. The group's market share continues to increase over time.

Another strong point of this company is its perfect control of the quality of its products and its replenishment. This allows it to build customer loyalty and be able to respond to new orders within very short deadlines. This reactivity to demand is undoubtedly one of the strongest assets of the company opposed to often slower competition.

Finally, another strength of the Inditex Company which reassures traders and shareholders, is the particularly high margin level which perfectly reflects the profitable aspect of the activities carried out by this group and which seem perfectly mastered.

The factors in favour of a drop in the Inditex share price:

First of all, although Inditex enjoys a strong physical presence thanks to its large distribution network in stores and boutiques, the group has relatively little presence in the sphere of e-commerce, which is causing it to lose significant market shares.

Finally, the costs associated with the production of Inditex products remain relatively high compared to those of its main competitors. The same goes for training costs. It's therefore obvious that the group could still gain in profitability by working on that.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

How has the Inditex share price evolved over the past years?

The Inditex share price chart clearly shows a basic uptrend of this stock over the past 10 years. In fact, in 2009, just after the financial crisis, this share cost 5.40 euros. It then reached a first peak in 2013 at € 21.13, then another in 2014 at € 23.78. Since then, he has continued to earn points and is currently playing above 28 €.

In which zone does Inditex achieve the most turnover?

Although the Inditex group is based in Spain, the Spanish market actually represents only 18.2% of its turnover. It's in the rest of Europe that the group makes the most profit with 46.1% of its turnover. The other markets in which the company operates are the Americas market with 14.9% of turnover and 20.8% of turnover for the rest of the world, particularly Asia and Africa.

Which brands are owned and operated by Inditex?

Among the brands and retailers operated by the Inditex group, there is the Zara brand with its 2,067 points of sale, Bershka with 1,081 points of sale, Stradivarius with 994 points of sale, Pull & Bear with 973 points of sale, Massimo Dutti with 765 points of sale, Oysho with 636 points of sale, Zara Home with 552 points of sale, Zara Kids with 146 points of sale and Uterqüe with 78 points of sale.

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