Zara owner Inditex has reported a 1.5% increase in sales in the first quarter (Q1) of 2025, reaching €8.3bn ($9.4bn) and up 4.2% on constant currency basis.
Inditex described the results as “solid operational performance led by the creativity of our teams and the strong execution of the fully integrated business model”.
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The brand’s spring/summer 2025 collections have been positively received, contributing to a rise in sales to 5.3% when accounting for the leap year.
Gross profit saw a 1.5% increase, amounting to €5bn, while gross margin stood at 60.6%, a slight contraction of four basis points compared to the same quarter of the previous year.
Operating expenses saw a 2.3% increase. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 1% to €2.4bn.
Inditex’s EBIT saw a marginal rise of 0.3% €1.6bn, while profit before tax (PBT) remained steady at €1.7bn, maintaining a PBT margin of 20.2%.
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By GlobalDataNet income saw a slight increase of 0.8%, reaching €1.3bn.
Store and online sales in constant currency from 1 May to 9 June 2025 have increased 6% compared to the same period of the previous year.
Inditex has executed new store openings in 26 markets and currently operates 5,562 stores worldwide. The company’s inventory as of 30 April 2025 was 6% higher year-on-year.
The company anticipates a -3% currency impact on sales for the fiscal year 2025 but expects a stable gross margin. The company is planning investments of to scale capabilities and enhance competitive differentiation.
Ordinary capital expenditure is estimated at €1.8bn. A significant portion of this investment, €900m per year, is allocated to expanding logistics capacities, as part of the two-year logistics expansion plan in 2024 and 2025.
Inditex is also implementing new security technology in its stores to improve the customer experience and deepen the integration of digital and physical retail spaces.
Its Annual General Meeting is scheduled for 15 July 2025. At the meeting, its board will propose the appointment of Pontegadea CEO Roberto Cibeira as proprietary director, following José Arnau’s departure from the board.
