FY2024 Results

/ In 2024, Inditex continued with a very robust operating performance due to the creativity of the teams and the strong execution of the fully integrated business model

/ Oscar García Maceiras, CEO, "The excellent sales and profit figures show the solidity of the Inditex Group's profitable growth, based on the quality of the commercial offer of all our formats, 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 collections have been very well received by our customers. Sales grew 7.5% to reach €38.6 billion, showing very satisfactory development both in stores and online. Sales were positive in all concepts. Sales in constant currency grew 10.5%

/ The execution of the business model was very strong. Gross profit increased 7.6% to €22.3 billion. The gross margin reached 57.8%. The control of operating expenses has been rigorous. Operating expenses increased 6.5%, below sales growth

/ EBITDA increased 8.9% to €10.7 billion and EBIT 11.0% to €7.6 billion. PBT increased 10.3% to €7.6 billion

/ Net income increased 9.0% to €5.9 billion, building on the strong growth over recent years

/ Given the very satisfactory execution of the business model, lease adjusted funds from operatios grew 9.9% and cash from operations grew 8.0%. The net cash position grew 0.8% to €11.5 billion

/ The Board of Directors will propose to the AGM a dividend increase of 9% to €1.68 per share for FY2024, composed of an ordinary dividend of €1.13 and a bonus dividend of €0.55 per share. The dividend will be made up of two equal payments: On 2 May 2025 a payment of €0.84 per share (ordinary). On 3 November 2025 a payment of €0.84 per share (€0.29 ordinary + €0.55 bonus)

/ Outlook: Strong commitment to profitable growth. The increase in annual gross space in the period 2025-2026 is expected to be around 5%

/ We estimate ordinary capital expenditure of around €1.8 billion in 2025. This investment will be mainly dedicated to the optimisation of our commercial space, its technological integration and the improvement of our online platforms

/ Logistics expansion plan is on track: the two-year extraordinary investment programme, focused on the expansion of the business, allocates €900 million per year to increase logistics capacities in each of the 2024 and 2025 financial years

/ Spring/Summer collections have been well received by our customers. Store and online sales in constant currency, adjusted for the calendar effect of an extra trading day in February 2024 due to the leap year, increased 4% between 1 February and 10 March 2025 versus the same period in 2024. In the last commercial week, store and online sales in constant currency increased 7%

Very strong execution

Inditex's fully integrated model had a very strong operating performance over the year. Sales, EBITDA and net income reached historic highs.

The Group continues to focus on four key areas: A unique product proposition, enhancing the customer experience, sustainability, and the talent and commitment of our people.

Strong sales growth

In 2024, the collections have been very well received by our customers. Sales grew 7.5% to reach €38.6 billion, showing very satisfactory development both in stores and online. Sales were positive in all concepts. Sales in constant currency grew 10.5%.

Store sales

In the year, store sales grew 5.9% reflecting incremental footfall and increasing productivity. Our ongoing store optimisation and digitalisation programme continues to be key. The higher level of store sales has been achieved with 2.0% more commercial space and 2.3% less stores than in 2023. In 2024, gross new space increased 5.8%.

Inditex opened stores in 47 markets in 2024. During the year, the Group opened its first stores in Uzbekistan, and remained very active in store optimisation activities (257 openings, 254 refurbishments which include 121 enlargements and 386 absorptions). At the end of FY2024 Inditex operated 5,563 stores. The number of stores by concept is included in Annex IV.

Online sales

Online sales also grew satisfactorily at 12.0% to reach €10.2 billion.

Customer engagement remains very high. Active App's reached 218 million. Online visits in FY2024 have grown 10.0% to 8.1 billion visits. The Group has 257 million followers on social media.

Sales by concept

Net sales by concept in 2024 are shown in the table below:

Sales by geography

Store and Online sales by geographical area are shown in the table below:

Strong execution in 2024

The execution of the business model has been very strong. Gross profit increased 7.6% to €22.3 billion. The gross margin reached 57.8% (+8 bps).

The tight control of operations and the implementation of efficiencies has resulted in operating expenses growth of 6.5%, below sales growth. Including all lease charges, operating expenses grew 126 bps below sales growth.

Including all lease charges, rental expenses grew 5.9%.

EBITDA reached €10.7 billion (+8.9%), EBIT came to €7.6 billion (+11.0%).

A breakdown of financial results can be found in Annex VI.

Results from companies consolidated by the equity method came to €99 million.

PBT increased 10.3% to €7.6 billion. The breakdown of PBT by concept is shown below:

Net income increased 9.0% versus 2023 to €5.9 billion.

Given the strong execution of the business model, lease adjusted funds from operations grew 9.9% and cash from operations grew 8.0%.

The net cash position grew 0.8% to €11.5 billion.

Inventory was 12% higher as of 31 January 2025 versus the same date in 2024. Current inventory balance was up 6% versus the same date in 2024. Initial Spring/Summer collections are considered to be of high quality.

Capital expenditure for FY2024 including the extraordinary investments came to €2.7 billion.

Dividends

Inditex's dividend policy consists of a 60% ordinary payout and bonus dividends. For FY2024, the Board of Directors will propose at the AGM a dividend increase of 9% to €1.68 per share, composed of an ordinary dividend of €1.13 and a bonus dividend of €0.55 per share. The dividend will be made up of two equal payments: On 2 May 2025 a payment of €0.84 per share (ordinary). On 3 November 2025 a payment of €0.84 per share (€0.29 ordinary + €0.55 bonus).

Strategic initiatives

We continue to see strong growth opportunities. Our main priorities continue to be the improvement of our fashion proposition and the customer experience, the clear focus on sustainability and taking care of the talent and commitment of our people. Prioritising these areas will drive long-term growth.

The flexibility and responsiveness of our business in conjunction with in-season proximity sourcing allows a rapid reaction to fashion trends and reinforces our unique market position. This provides us with great potential for the future.

The growth of the Group is underpinned by the continual investment in our store network, the advances made to the online sales channel and the improvements to the logistics platforms, with a clear focus on innovation and technology. Sustainability is central to this.

In order to extend our differentiation further we are developing a number of initiatives in key areas for the coming years.

/ Product Proposition

We will continue focusing on the creativity, quality and design of all our products and reinforcing the commercial initiatives of all our concepts. 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 are just some of the proposals that will be available throughout 2025.

The collections show our strong commitment to creativity, thanks to our talented team that is focused everyday on innovation and adaptation to what our customers are looking for.

/ Customer experience

We will continue to offer the best shopping experience to our clients.

Regarding our stores, Zara is launching in new locations (Nanjing Xinjiekou, Athens Minion, Eindhoven Rechtestraat and Osaka Umekita), and opening new standalone Zara Man stores such as Zúrich Bahnhofstrasse. The rest of the concepts also continue to open relevant projects. Two examples of this are the recently opened Bershka store in Mumbai Palladium, and Pull&Bear which will open soon on Oxford Street in London.

In terms of new markets in 2025, the Group will launch its first stores in Iraq. Bershka will open its first stores in Sweden, while Bershka and Massimo Dutti will launch for the first time in Denmark. Stradivarius will open its first store in Austria, and Oysho will open for the first time in The Netherlands and Germany.

We continue introducing the new soft tag alarm technology in our stores. This new technology is a significant improvement in customer experience, facilitating interaction with our products and improving the purchasing process. The new system is now fully operational in Zara, and will be available in Bershka and Pull&Bear this year. It will be progressively implemented in the rest of the concepts and is the basis for us to continue deepening the digitalisation of stores and their integration with online platforms in the coming years.

/ Sustainability

Fibres

By the end of FY2024, 73% of the textile fibres used in manufacturing our garments were lower-impact fibres. Our goal is to reach 100% use of lower-impact textile fibres by 2030. Of the total textile fibres used, 39% was made up of recycled fibres, 23% was made up of organic and regenerative fibres and a further 10% was made up of other lower impact fibres.

Innovation

With a view to the 2030 objective, we are investing in innovation in order to drive capacity with respect to lower impact fibres, with a particular focus on textile-to-textile recycled fibres. Innovation is spearheaded by our Sustainability Innnovation Hub which aims to develop the application of fibres through more than 30 pilot programmes and the investment in startups such as the ones executed in 2024 like Infinited Fiber, Galy and Epoch.

Emissions

The progress made in fibres and the initial results of our Supply Chain Environmental Transformation Plan have allowed us to reduce our Scope 1, 2 and 3 SBT GHG emissions target by a further 5% compared to 2018. Our own emissions have been reduced up to 88% in the same period.

/ People

We will continue to promote the talent and commitment of our teams in order to reinforce our attractiveness as a benchmark employer.

At Inditex, we believe that the training and growth of our people form the basis of our transformation and provides a driving force for innovation. During 2024, around 3.3 million hours of training have been provided to our teams. Furthermore, the Group has promoted 9,300 employees over the course of the year. In view of our preference for internal promotion wherever possible, 70% of new positions were filled this way.

We aim to provide opportunities for all people. There are now currently more than 3,100 people with some type of disability employed in Inditex stores, logistics facilities, factories and head office teams around the world. This is more than twice the number of people who worked in the Group three years ago, in line with our public commitment.

Outlook: Strong commitment to profitable growth

Inditex operates in 214 markets. We enjoy a low market share in a sector which remains highly fragmented. This is where the long-term growth opportunity lies. We aim to build upon the significant growth of the business seen in recent years with the launch of various initiatives.

Optimisation of stores is ongoing, and we expect this to drive further gains in store productivity. The growth of annual gross space in the period 2025-2026 is expected to be around 5%. Inditex expects space contribution to sales to be positive in this period, accompanied by strong online sales.

Over the coming year, we are planning investments that will generate efficiencies and increase the competitive differentiation of the Group. We estimate ordinary capital expenditure of around €1.8 billion in 2025. This investment will be mainly dedicated to the optimisation of our commercial space, its technological integration and the improvement of our online platforms.

Our logistics expansion plan in 2024 and 2025 is on track. This extraordinary two-year investment programme focused on the expansion of the business allocates €900 million per year to increase logistics capacities in each of the 2024 and 2025 financial years. The objective of this logistics plan is to strengthen Inditex's capabilities to address strong global growth opportunities in the medium and long term. These investments will have the highest standards of sustainability and use the most up-to-date technology.

The Zaragoza II distribution centre for Zara is expected to commence operating in summer 2025.

At current exchange rates, Inditex expects a -1% currency impact on sales in 2025.

For 2025, Inditex expects a stable gross margin (+/-50 bps).

Start of 2025

Spring/Summer 2025 collections have been well received by our customers. Store and online sales in local currency, adjusted for the calendar effect of an extra trading day in February 2024 due to the leap year, increased 4% between 1 February and 10 March 2025 versus the same period in 2024. In the last commercial week, store and online sales in constant currency increased 7%.

2025 corporate calendar

Inditex expects to release interim results for FY2025 on the following dates:

Interim three months: 11 June 2025

Interim half year: 10 September 2025

Interim nine months: 3 December 2025

FY2025: March 2026 (tbc)