Zara parent Inditex defies cautious consumers with strong nine-month results

Zara owner Inditex posted a solid set of nine-month results for 2025, highlighting its resilience in a challenging retail environment and capping the period with a stronger-than-expected start to the winter season.

The world’s largest fashion retailer said sales for the first nine months of the year rose 2.7% to $32.9 billion (€28.2 billion), while sales in constant currency grew 6.2%. Net income increased 3.9% to $5.4 billion (€4.6 billion), supported by margin expansion and tight cost control, even as consumers across Europe remained cautious.

Winter momentum

Inditex also delivered an upbeat trading update for the start of its crucial fourth quarter. Store and online sales in constant currency between November 1 and December 1 jumped 10.6% year on year, a period that includes Black Friday, signalling strong demand for its autumn and winter collections. 

In the third quarter alone, sales rose 4.9% to $11.4 billion (€9.8 billion), beating analyst expectations of €9.69 billion, while constant-currency growth reached 8.4%. Gross margin in the quarter climbed to 62.2%, reflecting improved pricing and inventory management.

Company CEO Oscar Garcia Maceiras said the group had delivered “a strong performance in a complex market environment,” citing the creativity of its teams, its integrated business model and global diversification as key drivers.

Home advantage

Profitability remained robust across the nine-month period. Gross profit increased 3.2% to €16.8 billion ($19.6 billion), while EBITDA rose 4.2% to €8.3 billion ($9.7 billion). Inditex ended the period with a net cash position of €11.3 billion ($13.2 billion), highlighting its strong balance sheet.

While Inditex did not provide a regional sales breakdown, analysts said Spain’s resilient economy is likely providing a lift. Bernstein analyst William Woods said Spain has just been phenomenal, Reuters reported.

Around 20% of the group’s revenue comes from its home market.

Across Europe, many consumers have traded down to ultra-cheap online rivals such as Shein, but Inditex has outperformed competitors, including H&M, by combining fast product turnaround with disciplined pricing.

The company said demand for its autumn and winter collections remains strong as it enters its most important quarter of the year.

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Nathaniel Alexander Abaño

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