Inditex Sales, Profits Surge in 2024 as Fashion Giant Sharpens Operations

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Inditex Sales, Profits Surge in 2024 as Fashion Giant Sharpens Operations

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LONDON – Sales at Inditex outstripped expectations in 2024, growing 10.5 percent at constant currency to 38.6 billion euros and fuelling historic highs in profitability at the Spanish fast-fashion giant, parent of brands including Zara, Bershka, Pull & Bear and Massimo Dutti.   Inditex said its more efficient stores and multimillion-euro investments in manufacturing and logistics were paying off with EBITDA, or earnings before interest, taxes, depreciation and amortization, rising 8.9 percent to 10.7 billion euros. Net income in the 12-month period was up 9 percent to 5.9 billion euros. Oscar García Maceiras, chief executive officer of Inditex, called the figures “excellent” and said they show “the solidity of the group’s profitable growth.” Related Articles Business Features Achim Berg Launches FashionSights, an Independent Think Tank Fashion Scoops Zara Conscripted Closed to Downsize Its Denim for Kids He touted the quality of Inditex’s “commercial offer, the efficiency in all operations, and the constant innovation with which our teams drive a business model that continues to show its ambition and strength 50 years after the opening of our first store.” The first Zacaffè, designed by Art Recherche Industrie, opened at the new Zara menswear store in Madrid last year, and others are set for Seoul and Osaka in 2025. domo fotografia sl By contrast, the current year was off to a slower start with sales up 4 percent between Feb. 1 and March 10, compared with analysts’ projections of 7-8 percent growth. Over the past week, however, sales climbed 7 percent, which Jefferies said was likely due to the arrival of the warmer springtime weather. Inditex attributed its 2024 growth to the quality of its fashion offer, its efficient stores and improved logistics. Sales at actual exchange rates were up 7.5 percent, while in-store sales climbed 5.9 percent, reflecting incremental footfall and increasing productivity. The company said its ongoing store optimization and digitization program “continues to be key,” adding the higher level of store sales was achieved with 2 percent more commercial space, and despite 2.3 percent fewer stores than in 2023. A spring 2025 look from Zara. In 2024, gross new space increased by 5.8 percent. In the year, Inditex counted 5,563 stores in 214 markets, and said that its comparatively low market share in a “highly fragmented” sector presented a long-term growth opportunity. Looking ahead, the company said it would continue to optimize its store estate. The growth of annual gross space in the period 2025-2026 is expected to be around 5 percent, with capital expenditure set to be 1.8 billion euros. Inditex has also been focused on upgrading its logistics via an extraordinary two-year investment program in 2024 and 2025. As reported, Inditex has allocated 900 million euros per year in a bid to strengthen its capabilities and address “strong global growth opportunities in the medium and long term.” The company said the investments have “the highest standards of sustainability and use the most up-to-date technology.” Inditex has also been making moves on the fashion front. Zara in Adelaide, Australia. The company said that during 2025 it would be rolling out collections including Zara Woman The New; Massimo Dutti Gravity; Pull&Bear We are the Landscape; Bershka Retro Sport; Stradivarius Denim of Interest; Oysho Back to Training; and Zara Home Editions. The company said those collections “show our strong commitment to creativity, thanks to our talented team that is focused on innovation and adaptation to what our customers are looking for.”

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