As Inditex celebrates 50 years since the opening of the first Zara store in A Coruña, the Group remains focused on long-term growth through its core priorities: strengthening its fashion proposition, enhancing the customer experience, committing to sustainability, and supporting the talent and dedication of its people. These pillars, combined with a flexible business model and proximity sourcing, allow the company to react swiftly to trends and maintain its unique market position.
Inditex has posted solid Q1 FY25 results as Zara marks 50 years, with sales up 1.5 per cent to €8.3 billion (~$9.5 billion) and net income rising 0.8 per cent to €1.3 billion (~$1.5 billion).
It expects 5 per cent annual space growth and stable margins.
It plans €1.8 billion (~$2.07 billion) capex and €900 million (~$1.03 billion) per year for logistics, with innovation, including Zara’s new Travel Mode.
Inditex operates in 214 markets, where it holds a relatively low market share in a highly fragmented sector. The company expects strong growth opportunities ahead, supported by continued investment in its store network, advances in online sales, and improvements in logistics platforms, all underpinned by innovation and technology, Inditex said in a media release.
Between 2025 and 2026, Inditex forecasts approximately five per cent annual gross space growth, driven by store optimisation and robust online sales, which together are expected to yield a positive net space contribution.
At current exchange rates, Inditex anticipates a negative currency impact of three per cent on fiscal 2025 (FY25) sales. The company also expects gross margin to remain stable within a range of plus or minus 50 basis points.
Ordinary capital expenditure (capex) is projected at around €1.8 billion (~$2.07 billion) for FY25. In parallel, a logistics expansion programme is underway, allocating €900 million (~$1.03 billion) annually in 2024 and 2025 to increase capacity. This investment aims to support medium- and long-term growth, with the Zaragoza II distribution centre scheduled to begin operations this summer.
Inditex delivered a solid operational performance in the first quarter (Q1) of FY25, as its sales grew 1.5 per cent year-on-year to reach €8.3 billion (~$9.5 billion). In constant currency, sales grew 4.2 per cent, or 5.3 per cent after adjusting for the calendar impact of the leap year.
Following the opening of a store in Mexico City, further locations in Lisbon and Porto are planned, bringing the total to 17 stores across four countries.
Gross profit also rose by 1.5 per cent, reaching €5 billion (~$5.75 billion), with a gross margin of 60.6 per cent, down just four basis points compared to the same period last year. Operating expenses were tightly managed, increasing by 2.3 per cent. EBITDA grew by 1 per cent to €2.4 billion (~$2.76 billion), while EBIT increased marginally by 0.3 per cent to €1.6 billion (~$1.84 billion). Profit before tax remained flat at €1.7 billion (~$1.96 billion), maintaining a PBT margin of 20.2 per cent. Net income rose 0.8 per cent to €1.3 billion (~$1.5 billion).
The Group ended the quarter with a net cash position of €10.8 billion (~$12.4 billion). Inventory levels as of April 30, 2025, were six per cent higher than the previous year, with collections described as being of high quality, the release added.
Store and online sales between May 1 and June 9, 2025 increased by six per cent in constant currency compared to the same period in 2024, confirming the strong momentum of the Spring/Summer collections. In the Q1, Inditex opened new stores in 26 markets, bringing the total number of stores to 5,562.
The Inditex board of directors has proposed a dividend of €1.68 per share for FY24, to be paid in two equal instalments of €0.84. The first was paid on May 2, 2025, with the second scheduled for November 3, 2025.
Additionally, José Arnau will step down from Inditex’s board of directors upon the expiration of his tenure on July 15, 2025. The board will propose the appointment of Roberto Cibeira, CEO of Pontegadea, as a proprietary director.
The compnay added that Zara has fully implemented new in-store security technology that improves the customer experience and facilitates product interaction. The system is being rolled out across other concepts such as Bershka and Pull&Bear. Zara has introduced ‘Travel Mode’ for customers in the UK, Italy, and Japan—soon expanding to Spain, France, and Turkiye—enabling online orders to be delivered to customers while travelling and offering curated travel content for select cities.
In April 2025, Inditex partnered with the Asian University for Women to provide 50 five-year scholarships to women textile factory workers in Bangladesh. The inclusive for&from programme, aimed at integrating people with disabilities, continues to expand.
Fibre2Fashion News Desk (HU)
