Inditex: Vigorous Q3 Opening Casts Spotlight on Sales Performance

If profitability is usually the yardstick for measuring the evolution of fashion, in Inditex’s third quarter all eyes are on the evolution of sales. The Spanish group, which next Wednesday will report the evolution in the third quarter of its fiscal year, will be analyzed by the evolution of its sales, which in the first weeks of the period had a higher rate than in previous quarters. The third quarter of the fiscal year is usually the one in which Inditex records the highest gross margin.

“The autumn-winter collections have been very well received by our customers,“ Inditex said in its presentation of first-half results. The company that owns Zara advanced that store and online sales at constant exchange rates between August 1st and September 8th, 2025 accumulated a 9% growth compared to the same period of 2024.

The pace of the first few weeks of the group’s third quarter (which runs from August to October) saw the market regain confidence in the group’s sales performance. The focus on Wednesday will be on whether the acceleration of the start of the campaign, again impacted by exchange rates and sluggish consumer spending, will be maintained.

Inditex reported a 6.84% increase in sales, up to €9.35 billion, in the third quarter of 2024

It was in the third quarter of 2023 when Inditex left behind the double digit and settled in a lower growth than the sector was used to. In that period, the company posted a 6.67% increase in sales, compared to 14.03% in the second quarter of the same fiscal year and 11.11% in the same period of 2022. In the third quarter of 2024, the group chaired by Marta Ortega recorded a 6.84% increase in sales, up to €9.35 billion.

In the absence of international data to measure the evolution of the sector, in Spain, Inditex’s local market, fashion sales rose by 1.5% in August, to fall by 1.7% in September and to record a drop of 2.3% in October, according to data from the Business Association of Textile, Accessories and Leather Trade (Acotex). Although Inditex usually performs above this average, analysts doubt that it has maintained its 9% pace over the quarter as a whole.

The third quarter is usually the one with the highest margins due to the product mix and the absence of promotional campaigns

The positive note in the third quarter is likely to be the margin. The product mix of the autumn-winter season and the absence of discount campaigns make this quarter, every year, the one with the highest margins.

In the third quarter of 2024, Inditex’s gross margin stood at 61.5%, while in the same period of 2023 it was 61.7% and in 2022, 60.2%. So far this year, the margin remains in line with last year, with 60.6% in the first quarter and 56.5% in the second quarter.

Inditex ended the first half of the year with a 1.6% increase in sales, up to €18.35 billion, and a 0.8% increase in net profit, which reached €2.79 billion. The results for the first six months of the year (period ending July 31st) were in line with those of the first quarter, confirming the group’s new growth pattern.