Inditex Slows in Q1: Marginal Growth in Sales and Profit

The effects of the exchange rate and the impact of the leap year in the quarter weighed on the growth of the multinational, owner of Zara: discounting both effects, year-on-year growth stood at 5.3%. Gross Margin Reaches €5.01B

P. Riaño

11 jun 2025 - 07:55

Inditex moderates the pace in the first quarter. The multinational owner of Zara raised its sales by only 1.5% in the first quarter, to 8,274 million euros, and increased its net profit by 0.3%, to 1,305 million euros, compared to the same quarter of 2024. This growth is clearly lower than that of the previous year, when the world's leading fashion retailer increased its sales by 7.5% and its profit by 9%.

The company has highlighted in a statement to the Spanish Securities and Exchange Commission (Cnmv) that sales at constant exchange rates in the period from February 1 to April 30 have grown by 4.2% and, adjusted for the calendar effect of the leap year, the increase amounts to 5.3%.

The company's gross margin amounted to 5,011 million euros, representing 60.6% of sales, in line with the previous year. Gross operating profit (ebitda) grew by 1%, and gross profit (Ebit) rose by 0.3% to 1,641 million euros. Profit before tax remained "flat" at 1,671 million euros.

Inditex's growth was significantly lower than in the first quarter of 2024.

The group had 26 gross openings in the first quarter and closed the period with a network of 5,562 stores, one less than at the end of 2024 and 136 less than in the same period of the previous year.

In the face of weak first-quarter results, the pace picks up at the start of the second quarter: the company anticipates that sales between May 1 and June 9 will have grown by 6% compared to the same period last year. However, the group anticipates a 3% impact on sales for the year as a whole due to exchange rates.

On the other hand, Inditex has reduced its net financial position due to the decrease in cash. At the end of the period, the net financial position of the group (which has almost no debt with credit institutions) stood at 10,778 million euros, 7.3% less than a year earlier. On the other hand, inventories at the end of the period amounted to 3,791 million euros, 6.3% more than at the end of the first quarter of 2024.