Companies

Inditex reports slower growth in the first quarter

Jun 13, 2025 Spain

The Spain-based fashion retailer saw a 1.5% year-on-year increase in sales in the first quarter of 2025. However, these figures fell short of expectations, highlighting a more challenging economic environment

In the first quarter of the year, the company’s sales increased by 1.5% (or 4.2% on a constant currency basis), as compared to the same period of 2024, reaching 8.27 billion euros. At the end of the period, Inditex operated 5 562 stores.

Although the fashion retailer described its performance as “solid”, its revenue fell short of the average analyst estimate of 8.36 billion euros, according to an LSEG poll quoted by Reuters, highlighting the impact of global trade tensions.

However, in an investor call, Gorka García-Tapia, head of investor relations, commented: “We have such a global presence, and therefore we have a lot of experience over the last few decades with regards to managing changes in tariff regimes”, adding that Inditex’s diversified sales and sourcing give it flexibility.

Inditex also said that “the execution of the business model was sound”, even though the figures, while positive, contrast with those from 2024.

In the first quarter of 2025, the fashion retailer reported a 1.5% year-over-year increase in gross profit to 5.0 billion euros, while the gross margin narrowed by 4 basis points to 60.6%.

The company’s first quarter EBITDA rose by 1.0% to 2.4 billion euros, and first quarter EBIT increased by 0.3% to 1.6 billion euros, as compared to the same period of last year.

Inditex also said that profit before tax (PBT) remained flat at 1.7 billion euros in this first quarter, resulting in a PBT margin of 20.2%. In the end, net income slightly increased by 0.8% year-over-year, reaching 1.3 billion euros.