Inditex grew out of Confecciones GOA, the dressing-gown workshop Amancio Ortega and Rosalía Mera started in A Coruña in 1963. In 1975 they opened the first Zara store to sell their own production, and in 1985 Inditex was formed as the holding company. The group listed in Madrid in 2001 and is now the world's largest fashion retailer, with ~$45.1 billion (€39.9 billion) in FY2025 sales.
A demand-led supply chain
Traditional apparel brands commit to most of a season's production months in advance. Inditex orders less up front, watches daily sales from stores and online, and restocks what sells. A large share of production comes from suppliers in Spain, Portugal, Morocco and Turkey, which can deliver within weeks, and all product passes through central hubs in Spain before reaching stores, which are replenished about twice a week.
Why the model is so profitable
Small first orders mean fewer leftovers and fewer markdowns. In FY2025 Inditex earned a 58.3% gross margin, ~$9.04 billion (€8.0 billion) of EBIT and ~$7.01 billion (€6.2 billion) of net profit. In the first half of 2026 sales rose 7.6% to ~$22.4 billion (€19.8 billion) and gross margin improved to 58.7%.
Stores as marketing
Inditex spends far less on traditional advertising than most rivals. Its prime locations, window displays and editorial campaigns do much of the work, and it has been replacing small stores with larger flagships: 5,444 stores at end-July 2026 versus 5,528 a year earlier.
Pressures ahead
Shein and Temu compete on price online, the strong euro reduces reported growth, and EU rules on textile waste and supply-chain due diligence raise costs. Inditex is responding with brand elevation, online integration and investments in recycled fibers such as Circ.
