Shares In Zara Owner Inditex Sink Despite Record Profit

Zara’s parent company, Inditex, reported another record annual profit, but concerns over potential U.S. tariffs weighed on investor sentiment, causing its stock to decline, Agence France-Presse (AFP) reporter Valentin Bontemps covered the announcement.

Despite its optimism, the company acknowledged signs of slowing sales growth. I Photo: Lollasp Wikimedia Commons

The Spanish retail giant—whose portfolio includes brands such as Massimo Dutti, Pull & Bear, and Bershka—reported a net profit of €5.87 billion ($6.39 billion) for the fiscal year ending January 31, 2025.

This marked a 9% increase from €5.38 billion in 2023 and the company’s third consecutive year of profit growth.

Inditex credited its “very satisfactory” sales performance, which grew 7.5% to €38.6 billion in 2024, along with its “rigorous” cost control policy as key factors behind its success.

Despite its optimism, the company acknowledged signs of slowing sales growth.

Between February 1 and March 10, sales rose just 4%, down from 11% growth in the same period last year. According to a research note from UBS analysts, this represents the slowest pace of sales growth for the period since 2016.