Spanish fashion giant closes another record year with nearly 6-billion-euro profit

Clara Alba

A Coruña

Wednesday, 12 March 2025, 16:26

Inditex - Spain's multinational fashion group and owner of the Zara, Stradivarius, Pull&Bear and Bershka brand, among others - once again closes a historic financial year with a 9% increase in net profit, reaching almost 5.9 billion euros. This record figure is attributed to greater cost control and a 7.5% increase in sales, although the latter represents a more moderate growth compared to recent years.

The company, founded by Amancio Ortega, earned 38.6 billion euros. The slower growth rate becomes more noticeable if we compare current figures with those from previous years. This is the first time since the pandemic that neither profits nor sales have grown in double digits.

Even so, the gross margin (the profit the group makes on each sale) stood at 22.3 billion euros, 7.6% higher than in 2023, and already representing 57.8% of sales. In addition, the textile giant has confirmed that its Spring/Summer collections are already receiving positive feedback from customers. Sales from 1 February to 10 March 2025 have increased by 4%, compared to the same period in 2024.

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"The excellent sales and profit figures show Inditex Group's profitable growth, the efficiency in all operations and the constant innovation with which our teams drive a business model that continues to show its ambition and strength 50 years after the opening of our first shop," said Inditex CEO Óscar García Maceiras.

Good business performance allows the company to fulfil a great desire of its own: the board of directors will propose a dividend increase of 9% for 2025, to 1.68 euros per share.

Inditex also maintains its investment plan and growth strategy and, despite reducing the number of brick-and-mortar shops, the annual gross space in the period 2025-2026 is estimated at around 5%. "The logistics expansion plan remains on schedule: this extraordinary two-year investment programme focused on business expansion is earmarking 900 million euros to increase logistics capacity in each of the 2024 and 2025 financial years," said Inditex.

Despite the slowdown in its growth rate, also heavily influenced by the currency effect, the Galician textile giant remains consistent in its ability to sell more with fewer physical shops. The company closed the year with 5,563 shops, 129 fewer than the previous year. However, its retail space grew by 2%.

Online sales continued to gain ground, with almost 10.2 billion euros, more than 26% of the total compared to 25.2% in 2023. In physical shops, growth was 5.9%, two points lower.

Zara remains the company's flagship and, together with Zara Home, already accounts for more than 70% of turnover. Stradivarius, another of its most recognised brands, is already outpacing the 11.8% growth rate of Bershka and Oysho, with 14%.

By region, Spain once again gained weight, contributing 15% of turnover, while the rest of Europe also grew strongly. On the other hand, the US dropped from 19.6% to 18.6%, while Asia fell from 16.9% to 15.7%.

In terms of new markets, Inditex plans to open its first shops in Iraq in 2025. Bershka will open its first shop in Sweden. Stradivarius will premiere in Austria, while Oysho will do the same in the Netherlands and Germany.

What remains to be seen is the strategy Inditex Group will implement in the US, where it has put much of its international expansion efforts. The state of unpredictability caused by Donald Trump's geopolitical and tariff measures makes the future of Inditex across the Atlantic uncertain.