Inditex (ITX) Q1 2025 earnings summary

Executive summary

• Sales grew 1.5% year-over-year to €8.3 billion in Q1 2025, with net income up 0.8% to €1.3 billion, driven by strong Spring/Summer collections and solid operational performance.

• Store and online sales in constant currency increased 6% from May 1 to June 9, 2025, compared to the prior year.

• Inditex continued global expansion, operating in 214 markets with new store openings in 26 markets and a total of 5,562 stores at quarter-end.

• The company maintains a low market share in a fragmented sector, offering significant growth opportunities.

• Spring/Summer collections were well received, supporting sales growth in both store and online channels.

Financial highlights

• Gross profit rose 1.5% to €5.01 billion, with a stable gross margin of 60.6%.

• EBITDA increased 1% to €2.4 billion; EBIT up 0.3% to €1.6 billion; PBT flat at €1.7 billion with a 20.2% margin.

• Operating expenses grew 2.3% year-over-year, reflecting disciplined cost management.

• Inventory as of April 30, 2025, was 6% higher year-over-year, considered high quality.

• Net cash position at quarter-end was €10.8 billion.

Outlook and guidance

• Expects stable gross margin for FY2025 (+/- 50 bps) and a -3% currency impact on sales at current exchange rates.

• Annual gross space growth for 2025-2026 projected at around 5%, with positive net space contribution.

• Ordinary capital expenditure estimated at €1.8 billion for 2025.

• Logistics expansion plan allocates €900 million per year in 2024 and 2025 to increase logistics capacity.

• Store and online sales in constant currency grew 6% from May 1 to June 9, 2025, versus prior year.