Core Insights - Inditex, the owner of Zara, reported a sales increase of 4.9% to €9.8 billion ($11.4 billion) in Q3 2025, with a constant currency growth of 8.4% [1] - The company experienced a gross profit growth of 6.2% to €6.1 billion, resulting in a margin improvement to 62.2% [1] - Early Q4 trading showed a positive trend with store and online sales up 10.6% on a constant currency basis [2] Financial Performance - EBITDA for Q3 increased by 8.9% to €3.2 billion, while EBIT rose by 11.2% to €2.4 billion [2] - Net income for Q3 grew by 9% year-on-year to €1.8 billion [2] - For the nine months ending October 31, 2025, sales increased by 2.7% to €28.2 billion, with a net income rise of 3.9% to €4.6 billion [3] Operational Highlights - The company expanded its store count to 5,527 across 39 markets [3] - Gross profit for the nine-month period was €16.8 billion, with a margin of 59.7% [3] - Operating expenses increased by 2.4%, remaining below sales growth [3] Future Outlook - Inditex expects a gross space growth of around 5% in 2025/26, with a projected negative currency impact of approximately 4% on 2025 sales [4] - Capital expenditure for 2025 is estimated at around €1.8 billion [4] - The logistics expansion plan of €900 million for 2024 and 2025 is on track, with new distribution centers and store openings [5] Dividend Information - The company paid a final dividend of €0.84 per share for fiscal year 2024 on November 3, 2025 [6]

Core Viewpoint - Inditex, the parent company of Zara, is experiencing steady sales growth and is elevating its flagship brand amidst global retail challenges, leading to discussions about its positioning as a luxury brand rather than just a retail entity [1][5]. Financial Performance - Revenues increased by 8.4 percent in constant currency in the third quarter, reaching 9.8 billion euros, surpassing analysts' expectations of 7 to 8 percent growth [2]. - Gross profit rose by 6.2 percent to 6.1 billion euros, with a gross margin of 62.2 percent, indicating strong financial health compared to other retailers facing margin pressures [6]. - Operating expenses increased by only 3 percent, significantly lower than the sales growth rate, showcasing effective cost management [7]. Strategic Initiatives - The company's diversified business model and omnichannel integration have contributed to its resilience and strong performance [3]. - The consistent upscaling of brands under nonexecutive chair Marta Ortega Pérez has enhanced customer loyalty across Inditex's various brands, including Massimo Dutti, Bershka, and Zara Home [4]. Market Outlook - Early fourth-quarter sales are tracking up 10.6 percent in November at constant currency, driven by fall collections, indicating positive momentum heading into the holiday season [7]. - The first three weeks of November showed a 9 percent growth at constant currency, suggesting a healthy outlook for the company's performance [8].