The actions of Inditex They have drawn very steep mountains since Marta Ortega took over the presidency of the company in place of Pablo Isla, but this uncertainty does not divert the attention of some analysts from an important point for the future: increasing dividends to investors.
This is one of the aspirations that he marked Barclays in his report on the company – prior to the presentation of the results of the best quarter in its history -, and in this line the recently appointed CEO of the company wanted to send signals of tranquility, Óscar García Maceiras.
As collected Digital Economy, Maceiras insisted during the presentation of results in which the firm will maintain its hallmarks despite the shaking of its upper echelons, maintaining a predictable shareholder remuneration and a payout 60 percent.
And trusting in this promise, from Barclays The continued growth of the company is expected to translate into even better results and a consequent increase in dividends by 2022.
A hyperactive stock in December
The textile multinational lived a few weeks of authentic debauchery from November 30 to December 15, an interval in which Inditex it was shaken up on its board of directors and presented its results for the third quarter.
During those two weeks and until today, the company’s shares have gone from 29.67 euros to 28.15 euros with which it closed the trading session on Thursday – the last one until after Christmas which has also served to relatively stabilize the titles, allowing the week to close with an improvement of 1.33 percent.
Despite the doubts raised among investors after the appointment of Marta Ortega, Barclays has maintained the target price of the share of Inditex at 31.5 euros, reaching a value of up to 34 euros in an optimistic scenario that assumes a faster growth in the company’s operating performance.
The only way is up
In this intermediate scenario estimated by Barclays, Inditex’s total sales in 2021 will be 28,201 million and profits of 3,757 million, year in which the dividend distributed per share will be 0.73 euros.
In 2022, meanwhile, the British financial institution forecasts sales of 29,757 million euros and net profits of 4,390 million euros, leaving a dividend per share calculated at 1.15 euros.
Registration goals that will definitely be a challenge for the Galician textile company, but that the new board of directors will have to achieve if it wants to stimulate the dividend of its shareholders while maintaining the same payout that you have applied so far, just as promised Apple trees.
The doubts that shadow the way
From Barclaystherefore they break a spear in favor of Inditex’s new dome despite showing caution regarding his business development.
“Inditex has released another set of strong results in the third quarter, with sales and net income that have reached historical levels, “says the entity in its report.
“However, the slight non-compliance of two performance indicators relative to market expectations (its gross margin and inventory position) is likely to fuel market doubts about the group’s ability to continue delivering these extraordinary results, given the difficulties to which it must face “, is added in the document.
The challenges that Inditex must face are the growing competition from online operators, such as the Asian Shein, changes in shopping habits, and restrictions related to Covid-19, which remain more in force than ever after the appearance of the omicron variant.
In Barclays They indicate, however, that although the company “will now be managed by a less experienced management team after the recently announced changes”, it will continue to benefit from strong competitive advantages such as its local sourcing, its centralized organization, or its omnichannel strategy.