Inditex vs Zalando: Revenue, Profit and Business Model
Inditex reported ~$45B of revenue in FY2025 and ~$7B of net income. Zalando reported ~$14B of revenue in FY2025 and ~$243.1M of net income.
Latest financial snapshot
Financial summary
Inditex
Inditex grew sales from ~$31.3 billion (€27.7 billion) in FY2021 to ~$45.1 billion (€39.9 billion) in FY2025 (fiscal year ended 31 January 2026), while net profit nearly doubled from ~$3.62 billion (€3.2 billion) to ~$7.01 billion (€6.2 billion). FY2025 gross margin reached 58.3% and EBIT ~$9.04 billion (€8.0 billion). In the first half of 2026 (February to July), sales rose 7.6% to ~$22.4 billion (€19.8 billion) (9.2% in constant currency), gross margin improved to 58.7% and net profit rose 6.8% to about $3.39 billion (€3.0 billion). Sales in the first weeks of autumn/winter (1 August to 7 September 2026) were up 9% in constant currency. The group pays out a large share of profit as dividends, including a €0.875 per share final FY2025 dividend payable on 2 November 2026.
Zalando
Zalando's FY2025 revenue rose 16.8% to ~$14 billion (€12.35 billion), mainly because ABOUT YOU was consolidated from July 2025. Adjusted EBIT was ~$668 million (€591 million) and net income was about $243 million (€215 million). H1 2026 revenue rose 22.2% to ~$7.25 billion (€6.42 billion) on a reported basis. For full-year 2026, Zalando guides to adjusted EBIT of €680–720 million.
Revenue and profit by year
Where the revenue comes from
Inditex
- Own Stores and Online
Majority of sales
Sales through stores and online platforms the group runs directly across its seven brands.
- Franchise Sales
Minority of sales
Sales to franchise partners operating Inditex banners in markets such as parts of the Middle East and Latin America.
Zalando
- B2C (Zalando, ABOUT YOU, Lounge by Zalando)~91%
Wholesale sales, partner programme commissions and retail media across the three consumer apps; about $12.8 billion (€11.3 billion) of revenue in FY2025.
- B2B (ZEOS and SCAYLE)~9%
Fulfilment and logistics services for brands plus commerce software; revenue rose 14.6% to about $1.24 billion (€1.1 billion) in FY2025.
Business model and strategy
Inditex
How it makes money
Inditex is a vertically coordinated retailer. Designers in Arteixo and the brand headquarters work from daily store and online sales data; production is split between suppliers close to Spain (Spain, Portugal, Morocco, Turkey) that can react within weeks and longer-lead suppliers in Asia for basics.
Growth strategy
Inditex's growth plan rests on fewer but larger stores (5,444 stores at July 2026 versus 5,528 a year earlier, after optimisation in 51 markets), continued online integration, brand elevation at Zara and Massimo Dutti, and logistics capacity added through an extraordinary investment program in 2024-2025.
Competitive advantage
Inditex's advantage is speed combined with scale. Proximity sourcing, centralized Spanish logistics and RFID-tracked inventory let it test small batches, restock what sells and drop what does not. That model produces industry-leading profitability: ~$9.04 billion (€8.0 billion) of EBIT on ~$45.1 billion (€39.9 billion) of FY2025 sales, versus far thinner margins at most mass-market apparel rivals.
Zalando
How it makes money
Zalando reports two segments. B2C covers the Zalando, ABOUT YOU and Lounge by Zalando apps. There it earns money from goods it buys and resells itself (wholesale), from commissions in its partner programme where brands sell directly to Zalando customers, and from retail media sold through Zalando Marketing Services. B2C produced about $12.8 billion (€11.3 billion) of revenue in 2025.
Growth strategy
Zalando's plan rests on two growth vectors. In B2C it runs a multi-app approach, with Zalando, ABOUT YOU and Lounge by Zalando aimed at different customer groups. It is also widening into sports, beauty and home & living, and using AI tools such as the Zalando Assistant. In B2B it opens its logistics network (ZEOS) and software (SCAYLE) to outside brands and retailers.
Competitive advantage
Zalando combines a large customer base (62.5 million active customers in Q2 2026), relationships with thousands of brands through its partner programme, and a European logistics and software stack that it now sells to other companies through ZEOS and SCAYLE.
Questions about Inditex vs Zalando
Which company has higher revenue — Inditex, S.A. or Zalando?
Inditex, S.A. reported ~$45B (FY2025), while Zalando reported ~$14B (FY2025). By last reported revenue, Inditex, S.A. is the larger business, with Zalando reporting a smaller revenue base.
What is the market cap of Inditex, S.A. vs Zalando?
Inditex, S.A.'s market capitalisation stands at $166.0B, while Zalando's is $7.5B. Inditex, S.A. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Zalando.
Which is more financially efficient — Inditex, S.A. or Zalando?
Inditex, S.A. generates $276k / employee in revenue per employee, while Zalando generates $900k / employee. Zalando shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Inditex, S.A. and Zalando make money?
Inditex, S.A. and Zalando generate revenue in fundamentally different ways. Inditex, S.A.: Inditex is a vertically coordinated retailer. Zalando: Zalando reports two segments.
Which company is valued higher relative to revenue — Inditex, S.A. or Zalando?
On a price-to-sales (P/S) basis, Inditex, S.A. trades at 3.7x P/S and Zalando at 0.5x P/S. Inditex, S.A. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Zalando. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Inditex, S.A. bigger than Zalando?
By last reported revenue, Inditex, S.A. (~$45B (FY2025)) is the larger company compared to Zalando (~$14B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Inditex vs Zalando overview