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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

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Zara owner Inditex slumps as high expectations for earnings bite

Zara owner Inditex slumped nearly 6% after news of a surge in profit over the first nine months of the year underwhelmed against heightened expectations.

Inditex unveiled a 9.9% increase in pre-tax profit to €5.8 billion (£4.8 billion) and 7.1% uptick in sales to €27.4 billion for the first nine months of the year on Wednesday.

However, analysts pointed out that the figures reflected a “small miss” against estimates.

Deutsche Bank noted sales were 2% behind consensus and that below double-digit profit growth would likely be viewed as “disappointing”.

“Current trading is fractionally light but not inconsistent with a likely double-digit [fourth quarter] topline delivery,” Jefferies added.

“The group's impressive growth credentials look confirmed, but the shares likely needed a better print to prevent some profit-taking today.”

Shares fell 5.9% to €51.46.

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