Foto Fernando Ramírez
In the first quarter, the company’s net profit grew by 5.4% to 1.4 billion euros, according to Europa Press. Revenue increased by 5.8% to 8.7 billion euros, and at constant exchange rates the growth was higher – 8.8%, exceeding analysts’ forecasts. Gross profit rose by 6.9% to 5.4 billion euros, EBITDA rose by 7.3% to 2.6 billion euros.
Additional impetus to the market gave the data for the beginning of the second quarter: from May 1 to June 1, sales rose by 11.5%. Against this backdrop, Inditex shares jumped more than 5%, as investors took the dynamics as a signal of continued strong consumer demand.
According to analysts, the key advantage of the company remains its flexible supply model, which allows it to quickly update collections and reduce dependence on discounts. This maintains margins even as consumer spending slows down in some regions.
At the same time, the company notes growing uncertainty in certain markets. Geopolitical tensions have already affected sales in the Middle East, which accounts for about 5% of Inditex’s revenue. The company warns that the situation in the region may remain a pressure factor in the coming months.
Additional risks include higher logistics costs, rising raw material costs and currency fluctuations. According to Inditex estimates, the currency factor can reduce the revenue growth rate by about 1% by the end of the year.
Despite the strong start, the company has maintained its forecast for the current year. Inditex plans to invest about 2.3 billion euros in business development, focusing on store expansion, format renovation and operational efficiency improvement against the backdrop of increasing competition in the global fashion segment.
