Inditex Cuts Cash Reserves by 4.7%, Focuses on Financial Investments

Inditex reduces its bulging cash position. Despite the increase in sales and profit in the first nine quarters of the current fiscal year, the net financial position of the Spanish group stood at €11.268 billion, down 4.7% compared to the end of the same period of the previous year.

The group has also changed the composition of its cash compared to the previous year, with a greater weight of short-term financial investments and less cash and cash equivalents. In particular, short-term investments have soared by 49% over the past twelve months, reaching €5.318 billion at October 31st. On the other hand, the cash and cash equivalents position fell by 28% to €5.951 billion.

In terms of cash distribution, short-term investments rose from 30.2% of the total at the end of the third quarter of 2024 to 47.2% at the end of the current year. At the end of the first half of 2025, financial investments had already gained weight, accounting for 48.7% of the group’s total cash.

The company has increased the proportion of cash allocated to short-term financial investments to 47.2%

On the other hand, Inditex’s current financial debt remains at a testimonial one million euros (the same as three months ago), compared to the thirteen million euros it reached on October 31st, 2024.

In spite of having no debt, the group has registered a negative financial result of €49 million in the period from February to October, compared to €14 million in positive in the same period of the previous fiscal year.

The Spanish group closed the first nine months of the year with a 2.7% increase in turnover, while net income rose by 3.9%. Inditex’s sales in the first nine months of the year (between February and October) amounted to €28.171 billion, an increase of 6.2% in constant exchange rates, and net profit rose by €4.622 billion.