INDITEX : FY2025 Results

About this update from Industria De Diseno Textil, S.a.

/ In 2025, Inditex continued with a robust operating performance. The innovation, diversification and flexibility of our integrated model continues to support consistent sales growth and sustained profitability. / Óscar García Maceiras, CEO, "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". / The collections were well received by our customers. Sales grew 3.2% to reach €39.9 billion, showing very satisfactory development both in stores and online. Sales were positive in all concepts and, in constant currency, in all geographical areas. Sales in constant currency grew 7.0%. / The execution of the business model was very strong. Gross profit increased 3.9% to €23.2 billion. The gross margin reached 58.3%. The control of operating expenses has been rigorous. Operating expenses increased 2.8%, below sales growth. / EBITDA increased 5.0% to €11.3 billion and EBIT 5.9% to €8.0 billion. PBT increased 5.8% to €8.0 billion. / Net income increased 6.0% to €6.2 billion, building on the strong growth over recent years. / Given the very satisfactory execution of the business model, lease adjusted funds from operations grew 7%. The net cash position at the end of the period was €11.0 billion. / Inditex's dividend policy consists of a 60% ordinary payout and bonus dividends. For FY2025, the Board of Directors will propose at the AGM a dividend of €1.75 per share, composed of an ordinary dividend of €1.20 and a bonus dividend of €0.55 per share. The dividend will be made up of two equal payments: On 4 May 2026 a payment of €0.875 per share (ordinary). On 2 November 2026 a payment of €0.875 per share (€0.325 ordinary + €0.550 bonus). / Outlook: Strong commitment to profitable growth. The increase in annual gross space in 2026 is expected to be around 5% with a positive net space contribution, in conjunction with strong online growth. / In order to continue underpinning the long-term growth of Inditex, we estimate ordinary capital expenditure of around €2.3 billion in 2026. This investment will be mainly dedicated to the optimisation of our commercial space, its technological integration and the improvement of our online pla...

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