Inditex faces results presentation with shares 'pressured' by Middle East crisis

Madrid – Inditex will present its full-year results for 2025 this Wednesday, March 11, covering the period from February 1, 2025, to January 31, 2026. The Spanish fashion multinational is expected to report record highs in sales and profits, despite the impact of fluctuating exchange rates.

To provide context, Inditex closed its 2024 fiscal year with annual sales of 38.63 billion euros, up 7.46 percent, and a net profit of 5.88 billion euros, an increase of 8.93 percent. Based on performance throughout the year, these figures are anticipated to be surpassed. While confirmation of final-quarter sales is pending, this period is unlikely to negatively affect the balance sheet, as the fourth quarter is typically the highest-grossing for the company chaired by Marta Ortega.

A review of the 2025 fiscal year shows Inditex began with first-quarter sales of 8.27 billion euros and a net profit of 1.31 billion euros. This modest growth initially raised questions regarding the group's capacity for continued expansion. These concerns were partially alleviated by second-quarter results, where sales reached 10.08 billion euros and net profit rose to 1.49 billion euros. Though only slightly higher than the previous quarter, these results were achieved against a complex backdrop of unfavourable exchange rates.

Chief executive officer Óscar García Maceiras addressed these factors during the half-year results presentation, noting that while sales growth stood at 1.61 percent, it reached 5.1 percent at constant exchange rates. This distinction was well received by the markets; following the announcement on September 10, Inditex shares rose 6.51 percent to 45.43 euros.

Awaiting fourth-quarter results

In its latest update, Inditex reported a revival in revenue growth for the third quarter, with sales of 9.81 billion euros—up 4.88 percent, or 8.4 percent at constant exchange rates. This was accompanied by an 8.9 percent surge in net profit to 1.83 billion euros, marking the highest growth rates of the fiscal year so far. Consequently, the group closed the first nine months with total revenues of 28.17 billion euros and an accumulated net profit of 4.62 billion euros.

Final results for the fourth quarter remain to be disclosed. In December, the company reported turnover increases at constant exchange rates of 9 percent between November 1 and 24, and 10.6 percent between November 1 and December 1. Wednesday’s announcement will reveal whether this momentum was sustained throughout the quarter to exceed the 2024 fourth-quarter results of 11.21 billion euros in sales and 1.42 billion euros in net profit. Analysts expect year-end sales to approach 40 billion euros, with net profit likely to exceed the six billion euro threshold for the first time.

Shares 'under pressure' from Middle East crisis

Beyond the financial statements, the presentation is expected to cover the new dividend proposal for the 2026 Annual General Meeting. This follows a 9 percent increase in 2025 to 1.68 euros per share. Updates on the share buyback programme and the group's operations in the Middle East are also anticipated.

Inditex maintains a significant presence in the Middle East with nearly 700 stores across nine markets, including Turkey (204), Saudi Arabia (167), and Israel (82). The group recently expanded into Iraq, launching several brands including Zara, Massimo Dutti, and Bershka. While this regional exposure is substantial compared to the UK or the US, it is largely managed through local partners such as the Azadea Group. However, shares have come under pressure following the escalation of regional conflict on February 28.

Prior to this instability, Inditex shares had reached a record high of 58.28 euros on February 19. By Friday, February 27, the shares closed at 56.82 euros, but have since declined to an intraday low of 49.95 euros on Monday, March 9. This represents a 12.09 percent decrease from the pre-conflict valuation, as the market reacts to the uncertain geopolitical environment.

This article was translated to English using an AI tool.

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