Fashion

Inditex, positive start of the year: sales up 9% in the first quarter

In 2025, the group recorded a turnover of EUR 39.9 billion and a net profit up 6% year-on-year to EUR 6.22 billion

by Mo.D.

FILE PHOTO: A person carrying a bag walks by a Zara store in Plaza de Espana in Madrid, Spain, June 11, 2025. REUTERS/Ana Beltran/File Photo

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

Positive start to the year for the Spanish group Inditex . Between 1 February and 8 March, the company that owns the Zara brand reported sales, at constant exchange rates, up 9%, in line with analysts' expectations and above the 7% growth recorded in 2025 on a comparable basis.

The result should reassure investors about the group's ability to maintain solid growth despite the fact that demand remains fragile in its main markets, Europe and the United States, while households have to contend with rising energy prices linked to the conflict in the Middle East.

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In the November-January quarter, which includes key shopping periods such as Black Friday and the Christmas holidays, sales of the group, which counts brands such as Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Lefties in its portfolio, had risen to EUR 11.69 billion, up from EUR 11.2 billion in the same period last year.

On the Madrid Stock Exchange, the share opened the session at parity, while the balance since the beginning of the year is negative 7.5 per cent.

Record results in 2025

The performance in the first three months of the year follows record results in 2025. The group recorded a solid operating performance in the fiscal year from 1 February 2025 to 31 January 2026, with turnover of EUR 39.9 billion and net profit increasing by 6% year-on-year to EUR 6.22 billion, a record result for the fourth consecutive year.

Sales grew by 3.2% year-on-year to EUR 39.864 billion, however slowing down compared to the previous year's growth rate, when the increase was 7.5%, according to figures released today to the Spanish National Securities Market Commission (Cnmv). Profit growth is also decelerating compared to the +9% in 2024. Gross profit increased by 3.9% to EUR 23.2 billion. The gross margin reached 58.3%. Operating expenses were tightly controlled. Operating expenses increased by 2.8%, which was less than the growth in sales. Ebitda increased by 5.0% to EUR 11.3 billion and Ebit grew by 5.9% to EUR 8.0 billion. Gross profit rose by 5.8% to EUR 8.0 billion.

"The excellent results reflect the ability of our teams to reciprocate the trust that millions of customers place in our eight commercial formats every day," explained Oscar García Maceiras, CEO of Inditex, adding: "Getting in touch with them, understanding their desires and offering the best product and a differentiated experience are the basis of our long-term growth expectations.

In the long run

After the strong rebound in the period following the pandemic, the pace of Inditex's sales growth slowed down, but the group's profitability improved thanks to investments in the sales network and logistics, which allow new collections to be brought to shops more quickly.

In recent years, the company has undertaken a reorganisation of its retail network, closing smaller, underperforming shops and opening larger, more spacious flagship shops in major cities around the world, with the aim of improving the customer experience and strengthening the premium positioning of the group's brands. In parallel, it invested EUR 1.8 billion in the construction of a second logistics hub in Zaragoza.

With fewer but larger shops, Inditex expects the total retail network area to increase by 5% in 2026, following a 5.3% increase in 2025. Globally, the group had 5,460 stores at the end of January, 103 fewer than a year earlier.

Also thanks to the price increases implemented over the past three years, the group's profitability continued to improve. The operating margin (EBIT) reached 20.1% in 2025, up from 19.6% in 2024.

This performance appears to be significantly higher than that of its main competitor, H&M, which recorded an operating margin of 8.1% in 2025.

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