While Inditex celebrates 50 years from the opening of the first Zara shop in a Coruña, the group remains concentrated on long -term growth through its fundamental priorities: to strengthen its fashion proposal, improve the customer’s experience, engage in sustainability and support the talent and dedication of its people. These pillars, combined with a flexible business model and a proximity supply, allow the company to quickly react to trends and maintain its unique market position.
Inditex has recorded solid Q1 Fy25 results since Zara marks 50 years, with increasing sales of 1.5 percent for € 8.3 billion (~ $ 9.5 billion) and net income which increases by 0.8 percent to 1.3 billion euros (~ 1.5 billion dollars). The 5 % of the growth of the annual space and stable margins are expected. It provides 1.8 billion euros (~ $ 2.07 billion) Capex and 900 million euros (~ $ 1.03 billion) per year for logistics, with innovation, including the new travel mode of Zara.
Inditex operates in 214 markets, where it holds a relatively low market share in a highly fragmented sector. The company provides strong growth opportunities in advance, supported by continuous investments in its network of stores, progress in online sales and improvements in logistical platforms, all supported by innovation and technology, said Inditex in a media press release.
Between 2025 and 2026, Inditex includes about five percent of annual gross growth, led by the optimization of the shop and solid online sales, which together should produce a contribution of positive net space.
At current exchange rates, Inditex provides for a negative currency impact of three percent on tax sales of 2025 (FY25). The company also provides that the gross margin remains stable in a series of plus or less 50 basis points.
Ordinary capital expenses (Capex) are expected to approximately 1.8 billion euros (~ $ 2.07 billion) for the tax year. In parallel, a logistics expansion program is underway, allocandoing € 900 million (~ $ 1.03 billion) per year in 2024 and 2025 to increase the capacity. This investment aims to support medium and long -term growth, with the distribution center of Zaragoza II expected to start operations this summer.
Inditex offered a solid operational performance in the first quarter (Q1) of the year25, since its sales grew by 1.5 percent on an annual basis to reach 8.3 billion euros (~ $ 9.5 billion). In constant currency, sales grew by 4.2 percent, or 5.3 percent after having adapted the impact of the calendar of the year of jump.
After the opening of a shop in Mexico City, further locations are planned in Lisbon and Porto, bringing the total to 17 stores in four countries.
Gross profit also increased by 1.5 percent, reaching 5 billion euros (~ $ 5.75 billion), with a gross margin of 60.6 percent, down only of four basis points compared to the same period last year. Operating expenses have been strictly managed, increasing by 2.3 percent. Ebitda grew by 1 % to 2.4 billion euros (~ $ 2.76 billion), while EBIT has increased marginally by 0.3 percent to 1.6 billion euros (~ $ 1.84 billion). The profit before the tax remained flat to 1.7 billion euros (~ $ 1.96 billion), maintaining a 20.2 percent PBT margin. Net income increased by 0.8 percent to 1.3 billion euros (~ $ 1.5 billion).
The group concluded the quarter with a clear cash position of € 10.8 billion (~ $ 12.4 billion). The inventory levels as of April 30, 2025 were higher than six percent than the previous year, with the collections described as of high quality, added the release.
Sales of shops and online between 1 May and 9 June 2025 increased by six percent in constant currency compared to the same period of 2024, confirming the strong momentum of the spring/summer collections. In Q1, Inditex has opened new stores in 26 markets, bringing the total number of stores to 5,562.
The Board of Directors of Inditex proposed a dividend of € 1.68 per share for FY24, to be paid in two equal installments of € 0.84. The first was paid on May 2, 2025, with the second scheduled for November 3, 2025.
In addition, José Arnau will resign from the Board of Directors of Inditex at the expiry of his mandate on July 15, 2025. The Board of Directors will propose the appointment of Roberto Cibeira, CEO of Pontegadea, as owner.
Company added that Zara has completely implemented a new shop security technology that improves the customer’s experience and facilitates the interaction of the product. The system is launched through other concepts such as Bershka and Pull & Bear. Zara introduced the “travel mode” for customers in the United Kingdom, Italy and Japan, which expands to Spain, France and Turkiye, who enabled online orders to be delivered to customers while traveling and offer travel content with attention to selected cities.
In April 2025, Inditex collaborated with the Asian University for women to provide 50 five -year study bags to women workers weaving in Bangladesh. The inclusive for and from the program, aimed at integrating people with disabilities, continues to expand.
Fiber2fashion news desk (hu)