Inditex (Zara) posts record €5.87 billion profit in 2024

Inditex, Zara’s parent company, has once again set a new profit record, closing 2024 with its strongest financial performance to date. Despite a slight slowdown in growth, the fast-fashion giant continues to dominate the industry, even as competition intensifies.

For its fiscal year ending January 31, the global fast-fashion leader reported a net profit of €5.87 billion, a 9% increase from 2023 (€5.38 billion) and a 42% jump from 2022 (€4.13 billion)—both previous record-breaking years.

Under the leadership of Marta Ortega, daughter of billionaire founder Amancio Ortega, Inditex credits its strong performance to robust sales growth. Revenue climbed to €38.63 billion, up from €35.95 billion the previous year.

The company also attributes its success to a strict cost-control strategy, which helped boost profitability. The fashion giant, which employs 161,000 people and operates 5,600 stores worldwide, saw its gross margin rise by 8% to 58% of total revenue.

“These outstanding sales and profit figures demonstrate the strength of Inditex,” said CEO Óscar García Maceiras in a statement on Wednesday. The Spanish retailer, which owns seven brands, including Zara, Bershka, Massimo Dutti, and Stradivarius, continues solidifying its global position.

According to FactSet, the 2024 results met analyst expectations. The company had projected €5.87 billion in net profit and €38.57 billion in revenue.

While Inditex remains on a strong growth trajectory, its 2024 expansion rate was slower than in recent years—a widely expected trend given the intensifying competition in the fashion industry.

Given its 2024 performance, Inditex remains optimistic for the months ahead. The company reported a 4% year-over-year sales increase between February 1 and March 10 despite rising U.S. tariffs creating tensions in the global market.