Overview
- Inditex ranks first by economic profit based on 2024 results at $5.544 billion, narrowly ahead of LVMH at $5.514 billion, with Hermès at $4.217 billion.
- The report measures value creation by economic profit, tracking about 400 listed companies across the global sector.
- Industry economic profit fell 12% in 2024 as luxury recorded its first decline since 2016, reflecting weaker demand and pressure on margins.
- Mid‑market and discount players generated 34% of the sector’s economic profit in 2024, the highest share since 2010, with H&M entering the group of top super‑winners.
- Inditex’s lead is attributed to an integrated model, rapid replenishment, tighter inventory control, centralized logistics, digitalization and AI, while the report projects roughly 2% industry growth in 2025.