Inditex reports stagnant growth in Q1 2025 sales and profits

Madrid – On Wednesday, June 11, the Spanish fashion multinational Inditex Group released its consolidated financial results for the first quarter of its 2025 fiscal year (February 1 to April 30). The company experienced a notable slowdown, with both sales and profits showing minimal growth compared to the same period in 2024.

According to figures submitted to the Spanish National Securities Market Commission (CNMV), the owner of Zara reported total sales of 8.27 billion euros for the first quarter. This represents a modest 1.52 percent increase from the 8.15 billion euros recorded last year. This growth is significantly lower than the 7 percent sales increase seen in Q1 2024 and the 7.46 percent growth for the full 2024 fiscal year.

Profitability also showed a tight margin, with Inditex closing the first quarter with a net profit of 1.31 billion euros, a marginal increase of 0.46 percent from the 1.30 billion euros reported in Q1 2024. In contrast, Q1 2024 saw an 11.21 percent profit increase, contributing to an 8.93 percent net profit rise for the entire 2024 fiscal year.

Outlook for 2025 and Beyond

Despite the current slowdown, Inditex management maintains an optimistic outlook for the remainder of 2025 and beyond, citing "strong growth opportunities." They argue that the company's business model, active in 214 markets, still has a "low share in each of them." To unlock this potential, Inditex plans "ordinary" investments of 1.80 billion euros for 2025, as previously announced at the close of the 2024 fiscal year.

As an updated sales indicator, Inditex noted that sales (both in-store and online, at constant exchange rates) increased by 6 percent at the start of the second quarter of 2025, from May 1 to June 9. This increase in turnover reflects "positive reception from our customers," according to the Spanish fashion multinational, particularly for the new Spring/Summer 2025 (SS25) collections.

Dividend Approval and board changes

In other financial and corporate news, Inditex confirmed the proposed dividend for 2024 results. As approved in March, the Board of Directors will recommend to the General Shareholders' Meeting on July 15 the approval of a dividend of 1.68 euros per share. This will be distributed in two payments of 0.84 euros per share; the first was disbursed on May 2, and the second is scheduled for November 3.

Finally, the company announced that José Arnau, Inditex's vice president since June 2012, will retire from the Board of Directors at the end of his term, following the General Shareholders' Meeting on July 15. During this meeting, the appointment of Roberto Cibeira, executive director of Pontegadea (Amancio Ortega's investment vehicle and Inditex's founder and majority shareholder), will be proposed as a new proprietary director.