Inditex (ITX) Q1 2025 earnings summary

Executive summary

• Sales grew 1.5% year-over-year to €8.3 billion in Q1 2025, with constant currency growth of 4.2% and strong Spring/Summer collections.

• Net income increased 0.8% to €1.3 billion, reflecting solid operational performance and disciplined cost control.

• Store and online sales in constant currency grew 6% from May 1 to June 9, 2025, versus the same period in 2024.

• Continued global expansion with new store openings and refurbishments in 26 markets; total store count at 5,562 at quarter-end.

• Operates in 214 markets with low market penetration, offering significant global growth opportunities in a fragmented sector.

Financial highlights

• Q1 2025 sales reached €8.3 billion, up 1.5% year-over-year (4.2% in constant currency).

• Gross profit rose 1.5% to €5.01 billion; gross margin stable at 60.6%.

• EBITDA grew 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 increased 2.3% to €2.61 billion, reflecting disciplined cost management.

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

Outlook and guidance

• Gross margin guidance for FY2025 reiterated at +/-50 basis points; expects a -3% currency impact on sales for the full year.

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

• Ordinary capital expenditure for 2025 estimated at €1.8 billion, focused on stores, online, and technology.

• Extraordinary logistics investments of €900 million per year planned for 2024 and 2025.