Inditex Reports FY24 Sales Surge, Q1 Growth Slows

Inditex, the parent company of Zara, reported a strong performance for fiscal year 2024, with sales rising by 10.5% to €38.6 billion and pre-tax profits increasing by 10% to €7.6 billion. Despite a successful year, shares dropped around 8% following a slower start to the first quarter of 2025, where sales growth was only 4%, below market expectations. Online sales surged by 12% to €10.2 billion, while store sales increased by 5.9%, indicating robust demand across its various brands, including Massimo Dutti and Bershka. CEO Oscar García Maceiras emphasized the company's commitment to profitable growth and innovation, which he attributes to their continuing market strength. Looking forward, Inditex plans to maintain growth with an expected increase in gross space in the coming years. However, analysts have adjusted profit estimates downward, reflecting the recent sales miss.