CNBCยท2025-03-12 08:35Core Insights - Inditex, the owner of Zara, reported a year-on-year increase in fourth-quarter sales that met analyst expectations, despite indicating a slowdown in demand at the beginning of the year [1][2] - The company achieved fourth-quarter revenues of 11.21 billion euros ($12.2 billion), which aligns with the forecast of 11.2 billion euros by LSEG analysts and is an increase from 10.34 billion euros in the same period last year [1][2] - Full-year sales for 2024 rose by 10.5% in currency-neutral terms, totaling 38.63 billion euros, slightly above the anticipated 38.57 billion euros, with net income for the year at 5.88 billion euros, consistent with forecasts [2] Financial Performance - Fourth-quarter net income was reported at 1.42 billion euros, matching analyst expectations [2] - In comparison, the previous year's net sales were 35.9 billion euros with a net income of 5.4 billion euros, which were record highs for the company [2] - The company noted a slight slowdown in first-quarter sales for the current year, with revenues up 4% in currency-neutral terms from February 1 to March 10, compared to an 11% growth during the same period last year [3] Competitive Landscape - The results highlight the growing disparity between Inditex and its competitor H&M, which has faced challenges due to increased competition from lower-cost retailers like Shein [4] - H&M reported fourth-quarter sales that fell short of expectations, although they rose 3% in local currencies to 62.19 billion Swedish krona ($6.15 billion) [4] - H&M attributed its sales challenges to the timing of Black Friday, although it noted improvements in sales during December and January [4]