In the first half ended July 31, Inditex posted sales of €18.4 billion, up by a reported 1.6 percent year-on-year and 5.1 percent higher at constant currencies.
The Spanish fashion retailer, which owns the brands Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius and Oysho, added that its autumn/winter collections were well-received, with store and online sales from Aug.1 to Sept. 8 rising by 9 percent at constant currencies. Financial analysts were expecting a 7 percent rise.
In the first half, the gross profit rose by 1.5 percent to €10.7 billion, resulting in a margin of 58.3 percent, down by 0.05 percentage points from a year ago.
Ebitda increased by 1.5 percent to €5.1 billion, while operating expenses grew by 2.2 percent.
EBIT rose by 0.9 percent to €3.6 billion and pre-tax profit inched up by 0.1 percent to €3.6 billion. Net profit rose by 0.8 percent to €2.8 billion.
Funds from operations totalled €3.7 billion in the first half, up by 5 percent year-over-year, but free cash flow slipped to €1.2 billion from 1.9 billion.
Inditex said it will continue with its store optimization plan, driving further store productivity.The growth of annual gross space in the period 2025-2026 is expected to be around 5 percent, with positive net space accompanied by strong online sales.
At current exchange rates, Inditex expects an adverse currency impact of around 4 percent in 2025. For 2025, it expects a stable gross margin.
In the current year, Inditex is planning investments that will scale its capabilities, generate efficiencies, and increase its competitive differentiation further. It estimates ordinary capital expenditure of around €1.8 billion.
