Industria De Diseno Textil SA - ADR

Sales Growth and Performance: Inditex reported a sales growth of 1.5% year-over-year (YoY) for the first quarter of 2025, reaching EUR 8.3 billion. In constant currency, sales increased by 4.2%, and when adjusted for the leap year, growth was 5.3%. Step into Q2, store and online sales from May 1 to June 9 grew by 6% YoY, indicating continued positive momentum.

Gross Margin Stability: The company maintained a stable gross margin of 60.6%, with guidance for the full year expecting stability within a range of +/- 50 basis points. This resilience in gross margin, despite supply chain pressures, highlights the effectiveness of Inditex's business model.

Cost Management and Profitability: Operating expenses increased only by 2.3%, contributing to a 1% growth in net income to EUR 1.3 billion. EBITDA also reached EUR 2.4 billion, maintaining a strong profit-before-tax (PBT) margin of 20.2%. Effective cost management was a key contributor to sustaining profitability during the quarter.