Interim Nine Month 2024 Results

/ In 9M2024, Inditex continued with a very robust operating performance due to the creativity of the teams and the strong execution of the fully integrated store and online business model.

/ The Autumn/Winter collections have been very well received by our customers. In the 9M2024, sales in constant currency grew 10.5% showing very satisfactory development both in stores and online. Sales were positive in all concepts. We continue to operate with very healthy margins on sales across the different lines of the Income Statement.

/ In the 9M2024, sales grew 7.1% to reach €27.4 billion.

/ Gross profit increased 7.2% to €16.3 billion. The gross margin reached 59.4% (+4 bps versus 9M2023).

/ All expense lines have shown a favourable evolution. Operating expenses increased 7.0%, below sales growth.

/ EBITDA increased 7.2% to €8.0 billion. EBIT increased 9.3% to €5.7 billion.

/ PBT increased 9.9% to €5.8 billion.

/ Net income increased 8.5% to €4.4 billion.

/ We continue to generate strong cash flow and reinvest back into the business. The net cash position grew 3.0% to €11.8 billion.

/ The FY2023 final dividend of €0.77 per share was paid on 4 November 2024.

/ Autumn/Winter collections remain well received by our customers. Store and online sales in constant currency between 1 November and 9 December 2024 increased 9% versus the same period in 2023.

Interim Nine Months 2024: Very strong operating performance

In 9M2024, Inditex continued with a very robust operating performance due to the creativity of the teams and the strong execution of the fully integrated store and online business model.

The Autumn/Winter collections have been very well received by customers. In the 9M2024, sales in constant currency grew 10.5% showing very satisfactory development both in stores and online. Sales were positive in all concepts. We continue to operate with very healthy margins on sales across the different lines of the Income Statement.

Sales grew 7.1% to reach €27.4 billion.

In 9M2024, openings have been carried out in 45 markets. At the end of the period Inditex operated 5,659 stores. A list of total stores by concept is included in Annex I.

In 9M2024, the execution of the business model was very strong. Gross profit increased 7.2% to €16.3 billion. The gross margin reached 59.4% (+4 bps).

All expense lines have shown a favourable evolution. Operating expenses increased 7.0%, below sales growth. Including all lease charges, operating expenses grew 73 bps below sales growth.

EBITDA increased 7.2% to €8.0 billion. EBIT increased 9.3% to €5.7 billion. PBT increased 9.9% to €5.8 billion.

Annex II includes a breakdown of the Financial Results.

The tax rate applied to the 9M2024 results is the best estimate for the FY2024 based on available information. Net income increased 8.5% to reach €4.4 billion.

We continue to generate strong cash flow and reinvest back into the business. The net cash position grew 3.0% to €11.8 billion.

Due to the strong operating performance over 9M2024, inventory was 2.6% lower as of 31 October 2024 versus the same date in 2023. Inventory is considered to be of high quality.

Start of 4Q2024

The Autumn/Winter collections have been very well received by our customers. Store and online sales in constant currency between 1 November and 9 December 2024 increased 9% versus the same period in 2023.

Outlook

Inditex continues to see strong growth opportunities. Our key priorities are to continually improve the fashion proposition, to enhance the customer experience, to increase our focus on sustainability and to preserve the talent and commitment of our people. Prioritising these areas will drive long-term growth. To take our business model to the next level and extend our differentiation further we are developing several initiatives in all key areas for the coming years.

The creativity of our teams and the flexibility of the business model in conjunction with in- season proximity sourcing allows a swift reaction to customer demand. This situation results in a unique market position which provides our business model with great growth potential.

Inditex operates in 214 markets with low share in a highly fragmented sector and we see strong growth opportunities. We expect increased sales productivity in our stores going forward. The growth of annual gross space in the period 2024-2026 is expected to be around 5%. Inditex expects space contribution to sales to be positive in this period, in conjunction with a strong evolution of online sales. Optimisation of stores is ongoing.

At current exchange rates, Inditex reiterates its expectation of -3.0% currency impact on sales in 2024.

In 2024, Inditex expects a stable gross margin (+/-50 bps).

For 2024, we are making investments that are scaling our capabilities, generating efficiencies, and increasing our competitive differentiation to the next level. We estimate ordinary capital expenditure of around €1.8 billion.

In view of the strong future growth opportunities, Inditex is implementing a logistics expansion plan in 2024 and 2025. This extraordinary two-year investment programme focused on the expansion of the business allocates €900 million per year to increase logistics capacities in each of the 2024 and 2025 financial years. These investments will have the highest standards of sustainability and use the most up-to-date technology.

/ Product proposition

We continue focusing on the creativity, innovation, design and quality of all our collections and integrated sales channels, while reinforcing the commercial initiatives of all our concepts. Zara Woman Metropolis, Zara Man Edition, Zara Kids Studio, Massimo Dutti Midnight Allure, Pull&Bear Not Just a DJ, Bershka Series, Stradivarius Movement of Autumn and Oysho Apres Ski are just some of the creative proposals available through the Autumn/Winter 2024.

/ Customer experience

We offer the best shopping experience to our customers both in our stores and on our online platforms.

The new store design for Zara created by our Architectural Studio is featured in openings, enlargements or relocations such as Madrid Hermosilla, Dublin South King, Birmingham Bullring, Istanbul Istinye, Los Angeles Topanga and Bangalore Mall of Asia.

We are optimising our store presence with important openings, enlargements and relocations in all concepts, with key examples like Massimo Dutti’s Miami Aventura Mall, Pull&Bear Milan Via Torino, Bershka Madrid Gran Vía, Stradivarius Berlin Alexa Centre, Zara Home Dubai Mall and Oysho A Coruña Plaza de Lugo.

We continue introducing the new security technology in our stores. This new technology provides a significant improvement in customer experience, facilitating interaction with our products and improving the purchasing process.

The new system will be fully operational in Zara in 2024. It is being progressively implemented in all the concepts and will be the basis for us to continue deepening the digitalisation of stores and their integration with online platforms in the coming years.

/ Sustainability

As part of our commitment to the development of new raw materials, Inditex has approved an investment in Epoch Biodesign, a startup that uses artificial intelligence to design enzymes that allow the recycling of mixed plastics and textiles. This alternative allows the transformation of textile waste into the equivalent of virgin materials, promoting textile-to- textile circularity.

Our Sustainability Innovation Hub currently works with more than 350 start-ups.

/ People

At Inditex, we are firmly committed to the training and development of our people as fundamental pillars to drive our transformation and guarantee the leadership of the future.

We have launched the Creatives programme, an initiative to identify and enhance the talent of the new generation of designers in our creative teams. Hand in hand with the best fashion schools in the world, we are looking for new talent to whom we offer a unique experience of training and professional development. The participants have begun their journey with us through a comprehensive training program that provides them with key tools to successfully face the challenges of a dynamic and constantly evolving industry.

Dividends

The FY2023 final dividend of €0.77 per share was paid on 4 November 2024.

The results for FY2024 (1 February - 31 January) will be published on 12 March 2025.