Nan Fang Du Shi Bao·2025-06-14 01:29Core Viewpoint - Inditex Group, the parent company of ZARA, reported a 1.5% year-on-year revenue growth to €8.27 billion for Q1 2025, with net profit increasing by 0.8% to €1.305 billion, both figures falling short of analyst expectations, leading to a significant drop in stock price by over 6% on the announcement day [2][4]. Financial Performance - Revenue for Q1 2025 reached €8.274 billion, up from €8.150 billion in Q1 2024 - Net income attributable to the controlling company was €1.305 billion, slightly up from €1.294 billion in the previous year - Gross profit increased to €5.011 billion, maintaining a gross margin of 60.6% - Operating income (EBIT) was €1.641 billion, with an EBIT margin of 19.8%, down from 20.1% in the previous year [5] Inventory and Sales Trends - Company inventory grew by 6.3% to €3.791 billion, outpacing revenue growth, raising concerns among analysts about a potential shift from growth to profit decline [4] - ZARA, the core brand, is speculated to have experienced a rare sales decline, contributing to the overall modest revenue growth [4] Comparison with Competitors - GAP Group outperformed Inditex in Q1 2025, with a 2.2% increase in net sales to $3.463 billion and a 22% rise in net profit to $193 million [6] Leadership and Strategic Initiatives - Amancio Ortega, the founder, is set to receive a €3.1 billion dividend, marking the first time since 1975 that he has received over €3 billion in dividends [8] - Marta Ortega, the current chairperson, is focusing on redefining ZARA's brand strategy, targeting affluent consumers, and enhancing digital sales channels, which now account for nearly 30% of total sales [9][12] New Store Openings and Innovations - ZARA opened a new flagship store in Nanjing, China, featuring over 2,500 square meters of retail space and incorporating sustainable retail practices and digital services [17] - The company launched a new "Travel Mode" feature in its app, enhancing its omnichannel digital strategy by providing location-based services to users [12]