PARIS – Zara parent Inditex saw sales hold steady in the first half of the year, with revenue up 5.1 percent at constant currency in the six months ending July 31.
The numbers looked less rosy once currency fluctuations were taken into account, with sales edging up just 1.6 percent.
The Spanish fashion giant, whose portfolio includes Zara, Massimo Dutti, Oysho, Pull&Bear, and Stradivarius, reported 18.4 billion euros in revenue, with net income ticking up 0.8 percent to 2.8 billion euros.
“We have again achieved a solid performance in this first half of 2025, with satisfactory sales in a complex market environment and keeping strong levels of profitability. The efficient execution accomplished by our teams demonstrates the strength of Inditex’s business model,” Inditex chief executive officer Óscar García Maceiras said in a statement.
He credited the company’s fully integrated model and agile supply chain, emphasizing in-season collection releases and proximity sourcing.
Breaking out the second quarter, sales amounted to 10.13 billion euros, indicating constant currency growth of 5.8 percent year-over-year in the three months to July 31.
Results were in line with analyst expectations.
“Inditex has executed very well in recent years, and has benefited from its strong design/buy set-up and quick response business model. In recent years, it has become more integrated between stores and online, and has made good use of RFID to maximize full-price sales through efficient in-store inventory management — and most recently for more frictionless checkout,” RBS analyst Richard Chamberlain said in a note.
“We now see potential for a more normalized rate of sales and EPS growth, with a relatively subdued FY26. As such, in our view, valuation looks fairly full compared to some other retailers and also the luxury sector,” he added.
Looking ahead, the start of the fall season suggests that sales for the fast-fashion giant will continue to grow. Sales between Aug. 1 and Sept. 7 rose 9 percent year-over-year at constant currency.
The company continued its investments in tech, joining the seed round for Theker Robotics, an AI-driven logistics information company. The round, which closed in July, raised 18 million euros for the three-year-old startup.
Theker’s tech enables robots to operate in dynamic industrial environments without requiring reprogramming, using a deep learning platform branded “robotics-as-a-service,” or RaaS.
Inditex also continued to cull smaller stores in favor of larger, upgraded locations, with gross floor space expected to grow 5 percent over the next year.
It also expanded its Lefties concept, adding a dozen stores that serve as Zara outlet-style locations offering discounted prices.
Inditex, which has invested heavily in logistics as well as its soft-tag system, has now fully implemented that technology in all Zara stores and is rolling it out to Bershka and Pull&Bear.
