Inditex (ITX) Q4 2025 earnings summary

Executive summary

• Achieved record sales, EBITDA, and net income for FY2025, with sales up 3.2% to €39.9 billion and net income up 6.0% to €6.2 billion year-over-year, driven by strong performance across all concepts, channels, and geographies.

• Store and online sales in constant currency grew 7.0%, with a strong start to 1Q2026 as sales in constant currency rose 9% between 1 February and 8 March.

• Continued disciplined execution of a flexible, diversified business model, with focus on product innovation, customer experience, sustainability, and talent development.

• 2025 and Spring/Summer 2026 collections have been well received by customers.

Financial highlights

• Gross profit rose 3.9% to €23.2 billion, with gross margin at 58.3% (+42 bps year-over-year).

• EBITDA increased 5.0% to €11.3 billion; EBIT up 5.9% to €8.0 billion; PBT up 5.8% to €8.0 billion.

• Free cash flow reached €4.7 billion; lease-adjusted funds from operations grew 7% to €8.2 billion.

• Net cash position at year-end was €11.0 billion.

• Operating expenses were rigorously controlled, rising 2.8% year-over-year.

Outlook and guidance

• Expects annual gross space growth of ~5% in 2026, with positive net space contribution and strong online growth.

• Ordinary capital expenditure planned at €2.3 billion in 2026, focused on store optimization, technology, and online platforms.

• Guidance for 2026 gross margin is stability within ±50 basis points.

• Anticipated -1% FX impact on top-line in 2026, mainly in the first half.

• Spring/Summer 2026 collections well received; store and online sales up 9% in constant currency from 1 Feb to 8 Mar 2026 vs. prior year.