Record-Setting Q3 for Inditex: Best Gross Margin in Over 10 Years

Inditex continues to show that its new roadmap is based on moderate growth but profitability at record highs. The Spanish group, owner of Zara, ended the third quarter of fiscal 2025 (August-October) with its highest gross margin in more than a decade.

As reported by the company to the Spanish Securities and Exchange Commission (Cnmv), in the first nine months of the year the gross margin, i.e., that which measures the pure evolution of the business (sales minus cost of goods), stood at 59.7%.

In the third quarter alone, the gross margin reached 62.2%, the highest level achieved in any quarter in more than a decade. You have to go back at least to the third quarter of 2013, in the midst of the Great Recession, to find a gross margin equal to that scored in the current period.

Inditex has raised its gross margin from 61.5% in Q3 2024 to 62.2% in 2025

The third quarter of each fiscal year is usually the most profitable for Inditex, due to the sales mix (with the entry into stores of outerwear) and the absence of discount campaigns.

In the first quarter of the current fiscal year, the gross margin stood at 60.5%, rising to 56.5% in the second quarter and climbing to 62.2% in the third quarter. In 2024, the quarterly maximum reached 61.5% (in the third quarter) and in 2023, 61.7% (in the same period).

The Spanish group closed the first nine months of the year with a 2.7% increase in turnover, with sales of €28.171 billion, compared to €27.422 billion in the same period of the previous year.

The company ended the period with a net profit of €4.622 billion, an increase of 3.9% compared to €4.459 billion in the first three quarters of 2024.