penhagen. Despite operating fewer stores than a year earlier, Inditex ended fiscal 2025 with record revenue of €39.9 billion and net profit of €6.2 billion. Operating performance remained strong across the board, with EBITDA climbing 5 per cent to €11.3 billion. A model built on agility While much of the industry relies on lengthy production cycles and distant supply chains, Inditex has spent decades building a system designed for speed and flexibility. The company said the execution of its business model remained “very strong” in 2025, as sales growth translated into improving profitability. “For us, flexibility is one of the main strengths of our business model, and I think that it is a huge competitive advantage in such a changing world,” García Maceiras said during the earnings call.  Gross profit rose 3.9 per cent to €23.2 billion, pushing the gross margin to 58.3 per cent. At the same time, operating expenses increased only 2.8 per cent, below the pace of revenue growth. A smaller but stronger store network Over the past several years, Inditex’s strategy has been centred around physical retail. The company has focused on improving the productivity of its store network. Smaller locations have been closed or consolidated, while larger flagship stores have been expanded and modernised. In 2025, Inditex operated 5460 stores worldwide, down from earlier years. Yet the company said total sales have increased 22 per cent over the past three years, despite the reduction in store numbers. The company opened 190 stores during the year, while also refurbishing 217 locations and enlarging nearly 100 of them. Many smaller stores were absorbed into larger flagship formats designed to integrate physical retail with digital services. This unified system allows inventory to move quickly between warehouses and shops, helping the company respond to local demand while minimising markdowns. Inditex’s investment in omnichannel retail has also been central to that transformation. The company reported online sales of €10.7 billion in 2025, up 4.8 per cent from the previous year. Customers can browse online, pick up orders in-store, return items through physical locations or receive shipments from nearby shops rather than centralised warehouses. The company’s inventory management system connects these channels, enabling stock to move quickly to where demand emerges. Another innovation is an AI-powered virtual fitting tool on Zara’s website, allowing customers to create digital avatars that model clothing items before purchase. The feature has already generated more than seven million sessions across 43 markets. Zara remains the core engine  Although Inditex operates a portfolio of brands, including Pull&Bear, Massimo Dutti, Bershka, and Stradivarius, the company’s global influence still rests largely on Zara. The Zara ecosystem, which also includes Zara Home and value-oriented brand Lefties, generated €28.05 billion in revenue in fiscal 2025, accounting for roughly 70 per cent of Inditex’s total sales. The division grew slightly from €27.78 billion in 2024.  Even as Inditex reduces its overall store count, Zara remains central to its retail transformation strategy. The company has focused on relocating stores to prime urban locations and expanding flagship formats equipped with advanced technology and omnichannel capabilities. But newer growth opportunities are emerging elsewhere in the portfolio as well. Bershka, which generated €3.29 billion in sales in 2025, is preparing to enter both Brazil and the United States, while Massimo Dutti plans further expansion in North America. Meanwhile, Stradivarius recorded €3.00 billion in revenue in 2025, compared with €2.66 billion in 2024, marking one of the strongest growth rates within the group. Growth in a fragmented market  Despite its scale, Inditex still sees significant room for expansion. The company now operates in 214 markets worldwide, yet the global fashion industry remains highly fragmented. “In 2026, we will open our first stores in the group’s 99th market, Curaçao, and some of our formats will open their first physical stores in markets where Inditex is already present but through other brands,” García Maceiras said.  Early indicators suggest that Inditex’s momentum is continuing into the new fiscal year. Between February 1 and March 8, 2026, store and online sales increased 9 per cent in constant currency compared with the same period a year earlier. The company expects selling space to expand by roughly 5 per cent in 2026 while maintaining stable gross margins. “In 2026, after celebrating our 50th anniversary, our continuous focus will be to continue to feel younger and stronger than ever, thanks to the effort and commitment of our teams. We want to keep being a young company that excites people, and that surprises our customers,” the CEO concluded. Further reading: New stores redefining retail shopping in Asia: J Lindeberg, Zara and more.