Inditex First-Half Profit Drops

Inditex SA IDEXF reported a fall in its first-half profit and also announced a final ordinary dividend and a bonus dividend. Inditex posted first-half net income of 928 million euros (about $1.20 billion), versus 951 million euros, in the year-ago period. Its earnings before interest and tax fell to 1.194 billion euros from 1.219 billion euros. The company's earnings before interest, tax, depreciation and amortization dropped to 1.617 billion euros versus 1.624 billion euros. Inditex's net sales gained 6% to 8.09 billion euros versus 7.66 billion euros, while like-for-like sales rose 4.5%. However, the company's sales in local currencies jumped 11%. However, analysts projected a profit of EUR908.6 million on sales at EUR8.08 billion. Its gross margin narrowed to 57.6% versus 58.6%. Inditex shares fell 0.55% to close at $29.50 yesterday.