Inditex closes 2024 with single-digit growth, reaching 'historic highs' in sales and profits

Business

Óscar García Maceiras, chief executive officer of Inditex, during a presentation of Inditex's annual results. Credits: Inditex.

Madrid – Spanish fashion multinational Inditex Group, the parent company to the chains Zara and Bershka, presented its financial statements for the year ended January 31, 2025, on March 12, in which it reported new “historic highs”, despite growth slowing to a single-digit rate.

For the year, the group posted total sales of 38.63 billion euros, representing a 7.46 percent increase on the 35.95 billion euros reported in 2023. This was also a 36.57 percent increase on the 28.28 billion euros seen in 2019, the last year before impact from the pandemic hit. The positive growth in sales comes as a new historic high for Inditex, but at a lower, single-digit rate compared to the 10.37 percent growth experienced by the group last year.

In terms of net profit, Inditex closed the year on 5.87 billion euros, an increase of 8.93 percent on the 5.39 billion euros recorded in 2023 and a 52.45 percent uptick on the 3.85 billion euros seen in 2019. Akin to sales, profitability was also at “historic highs”, yet still at a single digit rate compared to the 30 percent increase in net profit in 2023.

“The excellent sales and profit figures show the strength of Inditex Group's profitable growth,” said chief executive officer, Óscar García Maceiras, in statements provided by the Spanish fashion multinational. This growth, he added, is “based on the quality of the commercial offering of all our formats, efficiency in all operations and constant innovation with which our teams drive a business model that continues to show its ambition and strength as we celebrate 50 years since the opening of our first store”.

Physical retail and Europe provide largest sources of income for Zara

Zara, which includes the operations of both Zara and Zara Home and Lefties, remained the company's main revenue generator, with total net sales of 27.77 billion euros (6.6 percent compared to the previous year). This was followed by Bershka, with sales of 2.93 billion euros (11.8 percent); Stradivarius, with 2.66 billion euros (14.1 percent); Pull&Bear, with 2.46 billion euros in sales (4.6 percent); Massimo Dutti, with 1.96 billion euros (6.6 percent); and finally Oysho, with annual sales reaching 831 million euros (11.8 percent).

In terms of performance by channel, sales in physical stores remained the group's main source of income, experiencing growth of 5.9 percent, to 28.46 billion euros. This was during a year in which the company closed 129 points of sale, bringing its network to 5,563 stores, despite increasing its retail space by 2 percent. Alternatively, turnover for its online sales channel grew 12 percent to 10.16 billion euros.

By market, Inditex strengthened its position in Europe, which, excluding Spain, represented 50.6 percent of its turnover, up from 48.7 percent in the year prior. The company is gaining even more weight in Spain, a market whose contribution to overall sales rose from 14.8 to 15.1 percent. This contrasts America, a region where physical and online sales dropped in contribution to 18.6 percent, as well as Asia and other markets, which reduced their weight within the group’s accounts to 15.7 percent of all sales.

Investments of 2.7 billion euros for 2025

Looking ahead to 2025, the company remains committed to total investments of 2.7 billion euros. This includes the 900 million euros of extraordinary investments that the company announced last year for 2025 as part of its strategic logistics expansion plan for 2024-2025; as well as the 1.8 billion euros in ordinary investments that Inditex has announced it will undertake this year, mainly aimed at optimising its retail network, its technological integration and improving its online commerce platforms. As a result of these investments, Inditex has forecast an increase in gross annual retail space of 5 percent during 2025/2026.

Finally, as a last update, the company has reported that sales between February 1 and March 10 increased by 4 percent compared to the same period in the year prior. This percentage rose to 7 percent, at constant exchange rates, during the last week of that same period.

This article was translated to English using an AI tool.

Inditex