Inditex reports stagnant growth in Q1 2025 sales and profits
According to figures submitted to the Spanish National Securities Market Commission (CNMV), the owner of Zara reported total sales of 8.27 billion euros for the first quarter. This represents a modest 1.52 percent increase from the 8.15 billion euros recorded last year. This growth is significantly lower than the 7 percent sales increase seen in Q1 2024 and the 7.46 percent growth for the full 2024 fiscal year.
Profitability also showed a tight margin, with Inditex closing the first quarter with a net profit of 1.31 billion euros, a marginal increase of 0.46 percent from the 1.30 billion euros reported in Q1 2024. In contrast, Q1 2024 saw an 11.21 percent profit increase, contributing to an 8.93 percent net profit rise for the entire 2024 fiscal year. Outlook for 2025 and Beyond
Despite the current slowdown, Inditex management maintains an optimistic outlook for the remainder of 2025 and beyond, citing "strong growth opportunities." They argue that the company's business model, active in 214 markets, still has a "low share in each of them." To unlock this potential, Inditex plans "ordinary" investments of 1.80 billion euros for 2025, as previously announced at the close of the 2024 fiscal year.
As an updated sales indicator, Inditex noted that sales (both in-store and online, at constant exchange rates) increased by 6 percent at the start of the second quarter of 2025, from May 1 to June 9. This increase in turnover reflects "positive reception from our customers," according to the Spanish fashion multinational, particularly for the new Spring/Summer 2025 (SS25) collections. Dividend Approval and board changes
In other financial and corporate news, Inditex confirmed the proposed dividend for 2024 results. As approved in March, the Board of Directors will recommend to the General Shareholders' Meeting on July 15 the approval of a dividend of 1.68 euros per share. This will be distributed in two payments of 0.84 euros per share; the first was disbursed on May 2, and the second is scheduled for November 3.
Finally, the company announced that José Arnau, Inditex's vice president since June 2012, will retire from the Board of Directors at the end of his term, following the General Shareholders' Meeting on July 15. During this meeting, the appointment of Roberto Cibeira, executive director of Pontegadea (Amancio Ortega's investment vehicle and Inditex's founder and majority shareholder), will be proposed as a new proprietary director.
In summary Inditex presented its Q1 2025 results, showing stagnant sales (+1.52 percent) and profits (+0.46 percent) compared to 2024.
Despite this, the company still sees 'strong growth opportunities' for its business model, with investments of 1.80 billion euros and a +6 percent sales increase at the start of Q2.
At the upcoming General Shareholders' Meeting, approval will be sought for a dividend of 1.68 euros per share, and the departure of José Arnau, vice president of Inditex, will be announced, with the proposed appointment of Roberto Cibeira as a new director. This article was translated to English using an AI tool.
FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
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