Spanish apparel retailer Inditex reported sales of €18.4 billion (approximately $21.53 billion) for the first half of 2025, reflecting a year-over-year increase of 1.6 percent and a constant currency growth of 5.1 percent. The company demonstrated robust performance, driven by innovative design, a cohesive operational strategy, and the success of its Spring/Summer collections. This impressive result underscores the Inditex sales growth in H1 2025.
Inditex’s gross profit rose by 1.5 percent to €10.7 billion, maintaining a gross margin of 58.3 percent. Net income experienced a slight increase of 0.8 percent, reaching €2.8 billion (around $3.28 billion). EBITDA grew by 1.5 percent to €5.1 billion, while EBIT rose by 0.9 percent to €3.6 billion, as detailed in the company’s press release.
Funds from operations improved by 5 percent, totaling €3.7 billion. However, free cash flow decreased to €1.2 billion, down from €1.9 billion, primarily due to increased working capital requirements. As of July’s end, Inditex reported a strong net cash position of €10 billion.
In terms of individual brand performance, Zara, which includes Zara Home and Lefties, remained the top contributor with sales of €13.15 billion in the first half. Pull&Bear reported sales of €1.16 billion, while Bershka increased to €1.44 billion. Stradivarius grew to €1.33 billion and Oysho reached €389 million, although Massimo Dutti experienced a slight decline to €895 million.
Geographically, Inditex broadened its global sales reach, with Europe (excluding Spain) accounting for the largest share at 50.7 percent in the first half. Spain contributed 15.5 percent, the Americas represented 17.8 percent, and Asia along with the rest of the world accounted for 16 percent.
The optimization of its store network continued, as Inditex maintained 5,528 stores across 35 different markets by the end of the reporting period. The company is focusing on logistics development, including investments in the Zaragoza II distribution center and a partnership with Theker Robotics, reinforcing its commitment to efficiency and sustainability. The introduction of new technologies such as soft-tag systems aims to enhance the customer experience within stores and improve integration with online platforms.
The launch of the Autumn/Winter collections has begun positively, with constant currency sales rising by 9 percent between August 1 and September 7, as noted in the release.
Looking ahead, Inditex anticipates a stable gross margin for 2025 (+/- 50 basis points) but expects a currency impact that could reduce sales by 4 percent based on current exchange rates. The company reaffirmed its commitment to enhancing its fashion offerings, customer care, sustainability efforts, and team development as core drivers of long-term growth.
Inditex expects an annual gross space increase of about 5 percent in 2025-2026, with growth projected in both physical stores and online sales. Ordinary capital expenditures are estimated to reach €1.8 billion, including €900 million annually allocated for logistics expansion to bolster global growth initiatives.
Additionally, the company emphasized its sustainability efforts, highlighting initiatives like the #bringyourbag campaign, which successfully reduced paper bag usage by 49 percent, and a new partnership with Ocean Conservancy that focuses on removing plastics and abandoned fishing gear from oceans. Overall, the highlights of the financial report clearly illustrate the Inditex sales growth in H1 2025 and the company’s strategic direction moving forward.
