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Zara owner Inditex, the world’s leading low-cost fashion retailer, posted a record annual profit for the third year running on Wednesday, seeing off strong international competition.
The Spanish group, which includes top brands such as Massimo Dutti, Pull & Bear and Bershka, reported a profit of 6.22 billion euros ($7.23 billion) in the fiscal year ending January 31.
That marked a six-percent rise on the 5.9 billion it raked in in 2024, which was also a group record, Inditex said.
The group, which employs more than 160,000 people worldwide, pointed to strong online sales growth of 4.8 percent.
Total sales grew 3.2 percent to reach 39.9 billion euros.
“Sales were positive in all concepts and, in constant currency, in all geographical areas,” the company said in a statement.
Inditex also reported a strong start to its first quarter, with store and online sales between February 1 and March 8 rising nine percent from the same period last year.
With fast-growing budget fashion retailer Shein taking share at the cheaper end of the market, Inditex’s main brand Zara has moved to attract more discerning shoppers and offered more expensive clothing.
The company is also improving its logistics to deliver online orders faster than rivals and investing in larger, more modern stores while it shuts smaller shops.
Inditex said it expects its total retail space to grow by about five percent in 2026 as it continues shifting toward fewer but larger stores. The company increased selling space by 5.3 percent last year.
At the end of January, Inditex operated 5,460 stores worldwide, down by 103 compared with a year earlier.
The post Zara owner Inditex posts record profit in 2025 appeared first on Vanguard News.
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