Inditex Navigates Challenging Retail Market with Modest Growth
Madrid, donderdag, 12 juni 2025.
Despite a competitive retail environment, Inditex achieved a moderate revenue growth of 1.5% in the first quarter of 2025, with total revenue of €8.27 billion. The spring and summer collections prove popular but do not fully meet analyst expectations. The gross margin remained stable at 60.6%, while net profit slightly increased by 0.8% to €1.3 billion. The initial early indicators for the second quarter are more positive, with revenue growth of 6% between 1 May and 9 June, suggesting a potential improvement in the fashion brand’s market position.
Financial Performance Overview
Inditex recorded a modest revenue growth of 1.5 percent in the first quarter of 2025, with total revenue of €8.27 billion. Revenue in constant currency increased by 4.2 percent, and adjusted for the leap year calendar effect, even by 5.3 percent [1][2]. The gross margin remained stable at 60.6 percent, only 4 basis points lower than in the first quarter of 2024 [2].
Profit Performance and Dividend
Inditex’s net profit showed a slight increase of 0.8 percent, reaching €1.3 billion [2]. The board proposes an attractive dividend of €1.68 per share, divided into two equal payments of €0.84. The first interim payment was already made on 2 May 2025, with the final payment scheduled for 3 November 2025 [2].
Market Perspective and Outlook
Despite modest growth, the initial signs for the second quarter are promising. Store and online sales in constant currency increased by 6 percent between 1 May and 9 June compared to the same period in 2024 [1][2]. The spring and summer collections were positively received by customers, indicating a potential improvement in market position [2].
Stock Market Reaction
The financial results initially led to a share price drop of more than 6 percent. The share opened on Wednesday 11 June at €46.08, a decline from the previous day’s closing price of €49.21 [3]. After a slight correction, the price partially recovered to €47.50, still 3.47 percent below the previous closing price [3].