Inditex 1Q25 Sales Slow to 1.5%, Citing Weather, Uncertainty

Inditex, the Spanish parent company of Zara, reported a 1.5% increase in sales during 1Q25, reaching €8.27 billion (MX$179 billion). The result fell short of analyst expectations of €8.36 billion and marked a slowdown from the 7% growth recorded in the same period last year.

The company attributed the more subdued performance to cooler weather in key markets, including Spain—where approximately 15% of its global sales originate—and ongoing macroeconomic uncertainty.

Despite slower revenue growth, Inditex maintained a gross margin of 60.6% and recorded a net profit of €1.31 billion, a slight year-on-year increase. The group, which also owns brands such as Massimo Dutti, Stradivarius, Bershka, and Pull&Bear, emphasized operational resilience and highlighted early signs of recovery.

Oscar García Maceiras, CEO, Inditex, reported a 6% increase in revenue during the early weeks of the second quarter. While lower than the 12% growth recorded during the same period in 2024, this uptick aligns with the company’s rollout of summer collections.

Inditex continues to invest in its store network and technology infrastructure, allocating €1.8 billion for upgrades in 2025. Its store portfolio was reduced to 5,562 locations as of April 30, down from 5,698 the previous year, in line with the group’s strategy to optimize retail space and focus on high-performing locations.

The company’s financial position remains solid, with nearly €6 billion in cash and cash equivalents and no outstanding financial debt at the end of the reporting period.