EUR 100.00 For Business Accounts Only

INDITEX: 4Q’20 RESULTS PREVIEW (ANÁLISIS BANCO SABADELL)

The company will release its 4Q’20 results on the 10th of March. Although the quarter got off to a poor start, we think the second half should be even worse due to the effect from restrictions put in place for the third wave of Covid-19, which were stricter in late December and all of January. -23% in Sales in 4Q’20 standalone BS(e), -42% in EBIT, -42% in Net Profit. Although visibility is low because the situation is exceptional, we believe that the share price is already factoring in a recovery scenario, and thus we do not see further upside from these levels.