Inditex's prospects in Spain are strong as Zara Marks 50; It offers Q1 solid

As Inditex celebrates 50 years since the opening of Zara's first store in a Coruña, the group remains focused on long -term growth through its central priorities: strengthening its fashion proposal, improving the customer experience, committing to sustainability and supporting the talent and dedication of its people. These pillars, combined with a flexible business model and a proximity supply, allow the company to quickly react trends and maintain its single market position.

Inditex has published solid results Q1 Fy25 since Zara marks 50 years, with sales 1.5 percent to € 8.3 billion (~ $ 9.5 billion) and the net income that increases 0.8 percent to € 1.3 billion (~ $ 1.5 billion). He expects an annual space growth of 5 percent and stable margins. It plans 1.8 billion euros (~ $ 2.07 billion) Capex and € 900 million (~ $ 1.03 billion) per year for logistics, with innovation, including Zara's new travel mode.

Inditex operates in 214 markets, where it has a relatively low market share in a highly fragmented sector. The company expects strong growth opportunities ahead, backed by a continuous investment in its network of stores, advances in online sales and improvements on logistics platforms, all backed by innovation and technology, Inditex said in a press release.

Between 2025 and 2026, Inditex forecasts approximately five percent growth of the annual gross space, driven by robust store and online sales, which together produce a positive contribution of net space.

To current exchange rates, Inditex anticipates a negative currency impact of three percent on the sales of fiscal year 2025 (FY25). The company also expects the gross margin to remain stable within a range of more or less 50 basic points.

Ordinary capital spending (CAPEX) is projected at around € 1.8 billion (~ $ 2.07 billion) for fiscal year 2015. Parallel, a logistics expansion program is being carried out, assigning € 900 million (~ $ 1.03 billion) annually in 2024 and 2025 to increase capacity. This investment aims to support medium and long term growth, with the Zaragoza II distribution center programmed to start operations this summer.

Inditex offered a solid operational performance in the first quarter (Q1) of the FY25, since its sales grew 1.5 percent year -on -year to reach € 8.3 billion (~ $ 9.5 billion). In constant currency, sales grew 4.2 percent, or 5.3 percent after adjusting the impact of the leap year calendar.

After the opening of a store in Mexico City, more locations are planned in Lisbon and Porto, which takes the total of 17 stores in four countries.

The gross gain also increased by 1.5 percent, reaching € 5 billion (~ $ 5.75 billion), with a gross margin of 60.6 percent, only four basic points compared to the same period last year. Operating expenses were closely administered, increasing by 2.3 percent. Ebitda grew 1 percent to € 2.4 billion (~ $ 2.76 billion), while Ebit increased marginally by 0.3 percent to € 1.6 billion (~ $ 1.84 billion). Profit before taxes were maintained at € 1.7 billion (~ $ 1.96 billion), maintaining a PBT margin of 20.2 percent. Net income increased 0.8 percent to € 1.3 billion (~ $ 1.5 billion).

The group ended the quarter with a net cash of € 10.8 billion (~ $ 12.4 billion). The inventory levels as of April 30, 2025 were six percent higher than the previous year, with collections described as high quality, the launch added.

The store and online sales between May 1 and June 9, 2025 increased by six percent in constant currency compared to the same period in 2024, confirming the strong impulse of spring/summer collections. In Q1, Inditex opened new stores in 26 markets, which carries the total number of stores to 5,562.

The Inditex Board of Directors has proposed a dividend of € 1.68 per share for fiscal year 2014, which will be paid in two equal installments of € 0.84. The first was paid on May 2, 2025, with the second scheduled for November 3, 2025.

In addition, José Arnau will leave the Board of Directors of Inditex at the expiration of his mandate on July 15, 2025. The Board will propose the appointment of Roberto Cibeira, CEO of Pontegadea, as owner director.

Compnay added that Zara has completely implemented the new store security technology that improves customer experience and facilitates product interaction. The system is being implemented in other concepts such as Bershka and Pull & Bear. Zara has introduced the 'travel mode' for customers in the United Kingdom, Italy and Japan, which expands to Spain, France and Turkiye, which allows online orders that will be delivered to customers while traveling and offers cured travel content for select cities.

In April 2025, Inditex associated with the Asian University for women to provide 50 five -year scholarships to textile factories in Bangladesh. The inclusive program and from the program, aimed at integrating people with disabilities, continues to expand.

Fiber2Fashion News Desk (HU)

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