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Inditex Reports Slowed Q1 Growth, Proposes Record Dividend as Sales Rebound

The board is seeking shareholder approval for a record dividend to signal confidence in its integrated store-and-online model.

Gente comprando en un Pull&Bear de Barcelona
El logo de Zara, en una de sus tiendas.
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Overview

  • First-quarter sales rose 1.5% to €8.274 billion and net profit edged up 0.8% to €1.305 billion, marking new highs despite moderating growth.
  • Constant-currency revenues increased 4.2% and 5.3% when adjusting for the leap year while gross margin climbed 1.5% to €5.011 billion.
  • Inventory grew 6% and operating expenses jumped 2.3% between February and April, a rare imbalance in Inditex’s usual cost discipline.
  • Sales between May 1 and June 9 accelerated by 6% year-on-year, pointing to a potential rebound in the second quarter.
  • Ahead of the July 15 annual meeting, management will propose a €1.68-per-share dividend and nominate Roberto Cibeira to replace José Arnau Sierra on the board.