One point that I think Inditex $ITX (+2.74%) I think is often underestimated is the enormous strength of the brands with young consumers. Especially for people in their twenties - students or young professionals - fashion is important but must remain affordable. This is exactly where Inditex hits the nerve of the times. Brands such as Zara, Bershka and Stradivarius offer trendy clothing at relatively moderate prices and react extremely quickly to new fashion trends.

I particularly noticed this on a trip to Lisbon: In many shopping streets, Stradivarius, Zara, Massimo Dutti and Bershka are right next to each other - and all three stores were full. This shows how well the brand portfolio works. The brands don't really compete with each other, but cater to different tastes within the same target group. For me, this is exciting from an investor's point of view because Inditex has created an entire fashion ecosystem for young shoppers.

Financial year 2025: solid growth and high profitability

Inditex once again reported solid results for the 2025 financial year (February 1, 2025 to January 31, 2026). Sales increased by 3.2% to 39.9 billion euros. In constant currencies, growth was even 7%. Both bricks-and-mortar retail and online business developed positively.

The Group also remained strong on the profit side. Gross profit increased to 23.2 billion euros, with a gross margin of 58.3%. EBITDA rose by 5% to 11.3 billion euros, while EBIT grew by 5.9% to 8.0 billion euros. At the bottom line, Inditex achieved a net profit of 6.2 billion euros, an increase of 6% compared to the previous year.

Another important point is the company's strong balance sheet. Inditex has a net cash position of around 11 billion euros, which gives the company great financial flexibility.

Shareholders also continue to benefit. A dividend totaling €1.75 per share is to be distributed for the 2025 financial year, consisting of a regular dividend of €1.20 and a bonus dividend of €0.55. The payout will be made in two equal tranches in May and November 2026.

Overall, it is clear that even if growth remains moderate, Inditex continues to impress with strong margins, high cash flows and a very robust business model.