Inditex FY2025 Results 2025 Earnings: Revenue Hits €39.9 Billion 

Inditex delivered a record FY2025 with revenue of €39.9 billion (+3.2%, or +7.0% at constant currency), EPS of €1.996 (beating consensus of ~€1.884), and net income of €6.2 billion (+6.0%). Gross margin expanded 42 basis points to 58.3%. Shares surged up to 5.2% on the day of results before closing around €52.86, up approximately 3.7% on the session. FY2026 has started strongly with sales up 9% in constant currency through early March.

About Inditex

Inditex (Industria de Diseno Textil, S.A.) trades on the Bolsa de Madrid under the ticker ITX.MC (BME: ITX). Founded in 1985 by Amancio Ortega and headquartered in Arteixo, Spain, the company is the world’s largest fast-fashion retailer. Its flagship brand, Zara (including Zara Home), generates over 70% of total revenue and profit. The broader brand portfolio includes Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Lefties.​

As of March 2026, Inditex holds a market capitalization of approximately €161 billion to €163 billion, making it the world’s 85th most valuable company. The company employs roughly 156,890 people globally and operates 5,460 stores across 214 markets. Key valuation metrics include a trailing P/E ratio of approximately 26.2x, a P/S ratio of 4.11x, and a forward dividend yield of approximately 3.38% for calendar 2026. The Return on Equity stands at 31%, while Return on Capital Employed is 40%, both unchanged from the prior year.

Top Financial Highlights

1. Total net sales reached €39.864 billion, a 3.2% increase over FY2024’s €38.632 billion. Sales in constant currency grew a more robust 7.0%, reflecting a significant foreign exchange headwind.
2. Net income climbed 6.0% to a record €6.220 billion, compared to €5.877 billion in the prior year.  Earnings per share (EPS) rose to €1.996, up from €1.884 in FY2024.​
3. Gross profit increased 3.9% to €23.222 billion, with the gross margin expanding 42 basis points to 58.3%.​
4. EBITDA grew 5.0% to €11.267 billion (margin of 28.3%), and EBIT expanded 5.9% to €7.997 billion (margin of 20.1%).​
5. Profit Before Tax (PBT) reached €8.020 billion, up 5.8%, with a PBT margin of 20.1%.​
6. Operating cash flow came in at €9.232 billion, while Free Cash Flow was €4.686 billion.​
7. Zara (including Zara Home and Lefties) generated €28.051 billion in sales, while Bershka delivered the strongest growth at €3.286 billion (+12.1%) and Stradivarius reached €3.002 billion (+12.7%).​
8. Online sales grew 4.8% to €10.7 billion, reflecting continued omnichannel strength.
9. The net cash position at year-end was €10.958 billion, down slightly from €11.495 billion a year earlier.​
10. Capital expenditure (including extraordinary investments) totaled €2.712 billion.​
11. A total dividend of €1.75 per share was proposed (€1.20 ordinary + €0.55 bonus), payable in two installments in May and November 2026.
12. Inventory was 2% lower year-over-year as of January 31, 2026, a sign of disciplined stock management.​
13. FY2026 guidance: Gross space growth of ~5%, stable gross margin (+/-50 bps), ordinary CapEx of ~€2.3 billion, and an expected -1% currency impact on sales.​

Beat or Miss?

Inditex’s FY2025 results came in ahead of analyst expectations across key metrics. Net income beat consensus estimates by roughly 6%. Bernstein noted that Q4 margins beat forecasts in both the quarter and for the full year, prompting the broker to raise its FY2026 EPS estimate to €2.30 from €2.23. The start-of-year trading update (9% constant-currency growth in Feb 1 to Mar 8) exceeded analyst expectations of approximately 8%.

What Leadership Is Saying?

“These results reflect the ability of our teams to honour the trust that millions of customers place in our eight commercial formats every day. Connecting with them, understanding their desires and delivering the best product and a differentiated experience underpin our long-term growth expectations.” – Oscar Garcia Maceiras, CEO​

“As we can see from the results published today, Inditex has performed superbly over 2025. Sales, EBITDA, and net income all reached new highs. The sales performance has been strong at +3.2%. The combination of good execution and an actively managed supply chain resulted in a solid gross margin performance. Operating expenses have been well managed, and this has resulted in a satisfactory level of operating leverage.” – Andres Sanchez, CFO
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The CFO also highlighted that the 58.3% gross margin was “best explained by the consistent execution of the business model we have seen across the year,” driven by full-price selling and proximity sourcing with short lead times. For FY2026, the company expects stable gross margins of +/-50 basis points and ordinary CapEx of around €2.3 billion focused on commercial presence, technological integration, and process efficiency.

Historical Performance

The table below compares Inditex’s FY2025 performance against FY2024 across principal income statement categories.

A notable aspect is that operating expenses grew just 2.8%, well below the 3.2% sales growth rate, demonstrating strong cost discipline. However, Free Cash Flow declined modestly due to changes in working capital (outflow of €803M vs. €198M in FY2024) and slightly higher CapEx.

Revenue by Concept (YoY)

Competitor Comparison

Inditex’s global fast-fashion peers, H&M Group and Fast Retailing (Uniqlo parent), also reported recent annual results. Note that fiscal year end-dates differ: H&M’s FY2025 ended November 30, 2025, while Fast Retailing’s FY2025 ended August 31, 2025.

Inditex’s gross margin of 58.3% remains the highest in the peer group, nearly 5 percentage points above H&M’s 53.4% and approximately 5.4 points above Fast Retailing. Inditex’s EBIT margin of 20.1% is more than double H&M’s operating margin and approximately 3.5 percentage points above Fast Retailing’s, underscoring the profitability advantages of its proximity sourcing model and full-price selling strategy.

Fast Retailing posted the strongest top-line growth at 9.6%, driven by rapid expansion in North America (+24.5%) and Europe (+33.6%). H&M managed only 2% growth in local currencies while simultaneously reducing its store count by 152 locations.

How the Market Reacted?

Inditex shares opened sharply higher on March 11, 2026, surging up to 5.2% to €55.20 in the early minutes of trading on the Bolsa de Madrid before moderating through the session. The stock ultimately closed at approximately €52.86, representing a gain of roughly 3.7% on the day. David Schaefer, a portfolio manager at Union Investment in Frankfurt, described the results as “quite impressive,” highlighting “effective cost management, along with better-than-anticipated gross and EBIT margins” as the standout feature.

Market sentiment was broadly bullish, with Bernstein maintaining its €60 price target and raising its FY2026 EPS estimate to €2.30, while Morningstar pegged the fair value at €53.50. However, broader market weakness in the days following (linked to Middle East tensions and oil prices) pulled the stock back to approximately €51.62 by March 13, 2026.