Parent company of the fast fashion brand Zara, Inditex reported 10.5 per cent rise in sales to €27.4 billion during Q3, FY24. The brand’s profit after tax increased by 6 per cent Y-o-Y to €1.68 billion during the quarter, while revenues declined by 2 per cent below analysts’ expectations to €9.4 billion. Despite slightly missing consensus estimates, Inditex remains ahead of its competitor H&M, leveraging Zara's brand strength and trend-driven appeal.
Zara continues to consolidate its position through strategic expansions and collaborations. The brand opened a 7,500-sq-ft Zara Man store in Madrid, offering exclusive collections featuring natural materials like cotton and cashmere. This store also houses Zacaffè, a coffee shop reflecting local architectural styles, a concept already tested in Paris, Lisbon, and Dubai. New café locations are planned for Seoul and Osaka in 2025.
In addition, the Madrid Zara Man store created space for a Zara Apartment concept, launching next year with curated homewares. The brand also upgraded the floor space at its California and Florida stores for improved customer experiences.
Inditex is optimising its retail strategy by reducing store counts while expanding younger-skewing concepts like Pull & Bear. The company also launched a teen line, Z3D, within Zara.
Looking ahead, Inditex plans to upgrade its infrastructure with an investment of €1.8 billion. The company is set to open a logistics center in Zaragoza in 2025. It has also made an investment in Epoch Biodesign to develop AI-driven recycling solutions for polyester and mixed-textile collections.
