Inditex (ITX) Q2 2025 earnings summary

Executive summary

• Achieved solid operational performance in H1 2025, with sales up 1.6% to €18.4 billion and net income rising 0.8% to €2.8 billion, supported by strong profitability in a complex market environment.

• Spring/Summer and Autumn/Winter collections were well received, driving both store and online sales growth, with a 9% increase in constant currency from August 1 to September 8, 2025.

• Operations span 214 markets, with a unique fashion proposition, focus on sustainability, and talent development.

• Opened stores in 35 markets, operating 5,528 stores at period end.

• Integrated business model and global diversification underpin confidence in future growth opportunities.

Financial highlights

• Net sales reached €18.4 billion, up 1.6% year-over-year; constant currency sales growth was 5.1%.

• Gross profit increased 1.5% to €10.7 billion; gross margin stable at 58.3%.

• EBITDA rose 1.5% to €5.1 billion; EBIT up 0.9% to €3.6 billion.

• Funds from operations increased 5% to €3.7 billion; free cash flow declined 39% to €1.165 billion.

• Net cash position was €10.0 billion at July 31, 2025.

Outlook and guidance

• Store and online sales in constant currency from August 1 to September 8, 2025, rose 9% year-over-year.

• Expects a -4% currency impact on 2025 sales; gross margin guidance stable within +/- 50 bps.

• Annual gross space growth expected around 5% for 2025-2026; ordinary capex for 2025 estimated at €1.8 billion.

• €900 million per year in extraordinary logistics investments planned for 2024-2025.

• Ongoing store optimisation and digitalisation to drive productivity and growth.