Latest news with #InditexGroup
Time of India
5 days ago
- Business
- Time of India
Zara India banks on tech-driven expansion amid sluggish sales growth
New Delhi: Spanish fashion retailer Zara , part of the Inditex Group , is sharpening its focus on the Indian market with new store openings, refurbishments, and the rollout of advanced in-store technologies, as it seeks to strengthen its omnichannel presence in the country, it shared with ETRetail. 'As of June 2025, Zara has 22 stores in India and its own online platform. We continue to see great opportunities in India, and the importance of the market becomes clear considering the latest projects in the country,' the Inditex press office said. The retailer opened new outlets in Pune's Mall of the Millennium in August 2024 and Bengaluru's Phoenix Mall in September 2024, and plans to reopen an enlarged and refurbished store in New Delhi's Pacific Mall by the end of 2025. Tech-first store formats In Bengaluru, Zara introduced features such as self-checkout with cash options, fitting room reservations, two-hour in-store pickup for online orders, product location via app, and dedicated return counters for online and offline purchases. The company said its commercial model is "based on constant listening of our customers' requests and analyzing retail habits, in order to properly respond to their demands through large, attractive and efficient stores that fit with the most innovative technological tools." Global investment driving local agility Inditex, Zara's parent company, is investing €1.8 billion globally in 2025 towards technological integration, online platform upgrades, and commercial space optimisation. Its logistics hubs in Spain, Portugal, Morocco, and Türkiye enable deliveries to Indian stores twice weekly, supporting faster inventory turnover. The group operates online in over 200 markets and physical stores in over 90 markets, supported by a supply chain spanning 50 countries, including India. Marginal sales rise, profit jumps In FY25, Inditex Trent Retail India reported revenue from operations of Rs 2,782 crore, a marginal 0.4% year-on-year rise, while net profit increased 23% to Rs 299 crore. The slowdown in sales growth comes as global and homegrown players, including H&M, Uniqlo, Mango, and Reliance-backed brands, intensify their push in India's premium fast-fashion segment. Analysts say sharper pricing, deeper regional penetration, and e-commerce-led launches are heightening pressure on Zara to maintain its market position.
Fashion United
11-06-2025
- Business
- Fashion United
Inditex reports stagnant growth in Q1 2025 sales and profits
Madrid – On Wednesday, June 11, the Spanish fashion multinational Inditex Group released its consolidated financial results for the first quarter of its 2025 fiscal year (February 1 to April 30). The company experienced a notable slowdown, with both sales and profits showing minimal growth compared to the same period in 2024. 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@
