The largest apparel retailer in the world, Inditex, which owns Zara, announced a record yearly profit on Wednesday for the third year in a row, citing strong sales and increased prices.
The Spanish company, which also owns seven other well-known brands, such as Massimo Dutti, Pull & Bear, and Bershka, reported a net profit of 5.87 billion euros ($6.39 billion) for the fiscal year that concluded on January 31. This was an increase from the record 5.38 billion euros in 2023.
Following a strong fourth quarter, the number was in line with analysts’ predictions surveyed by financial data company FactSet.
Inditex reported “very satisfactory” sales in 2024, which amounted to 38.6 billion euros, a 7.5 per cent rise over 2023.
The group said that “collections have been very well received by our customers” after implementing price increases to offset inflation-driven increases in production costs.
In contrast, Sweden’s H&M, Inditex’s primary competitor in the fast-fashion sector, saw sales decline in 2024 due to supply issues and increased competition from low-cost Asian internet shops like Shein.
Since sales increased 4.0 per cent between February 1 and March 10 compared to last year, Inditex expressed optimism for the upcoming year.
