Inditex (ITX) Q4 2024 earnings summary

Executive summary

• Achieved record sales of €38.6 billion in 2024, up 7.5% year-over-year (10.5% in constant currency), with net income rising 9% to €5.9 billion, driven by strong performance across all concepts and geographies.

• Online sales increased 12% to €10.2 billion, while store sales grew 5.9% despite a 2.3% reduction in store count.

• Expanded global footprint with new stores in 47 markets, including first entries in Uzbekistan and India.

• Focused on sustainability, innovation, and customer experience, with significant investments in technology, logistics, and talent development.

• Board proposes a 9% dividend increase to €1.68 per share, with a 60% ordinary payout and bonus dividends.

Financial highlights

• Gross profit rose 7.6% to €22.3 billion, with a gross margin of 57.8%; EBITDA increased 8.9% to €10.7 billion.

• PBT grew 10.3% to €7.6 billion; net income margin reached 15.2%.

• Free cash flow was €4.8 billion; net cash position at €11.5 billion.

• Funds from operations after fixed lease cash payments hit €7.7 billion, an all-time high.

• Operating expenses grew 6.5%, below sales growth, reflecting strong operating leverage.

Outlook and guidance

• Expects annual gross space growth of about 5% for 2025-2026, with positive net space contribution to sales.

• Ordinary capex estimated at €1.8 billion in 2025, focused on store optimization, technology, and online platforms.

• Logistics expansion plan allocates €900 million per year in 2024 and 2025.

• Anticipates a -1% FX impact on 2025 sales and stable gross margin (+/- 50 bps).

• Early 2025 sales up 4% (1 Feb–10 Mar) and 7% in the last commercial week, both in constant currency.