Zara’s parent company, Inditex, has announced a record dividend payment of €3.23bn to its founder, Amancio Ortega, after a year of strong financial results. The dividend increase of 4% follows a fiscal year where pre-tax profits hit €8bn and total sales reached €39.9bn. The group, which includes Pull&Bear and Bershka, reported that its strategic shift toward larger flagship stores has been a primary driver of growth.
The company’s workforce of 160,000 people operates across more than 5,400 stores worldwide. Although the firm closed more than 100 locations last year, its focus on larger floor plans resulted in a net gain in selling space. This approach has allowed the retailer to showcase more products and integrate new technologies like AI-driven virtual fitting rooms to improve the online shopping experience.
Amancio Ortega’s daughter, Marta Ortega Pérez, now leads the company as chair, while the founder maintains his 59% controlling stake. Ortega is currently the 15th wealthiest person in the world, with a fortune valued at over $126bn. He has famously used his dividend income to build a global property empire, purchasing iconic buildings in major financial centers like London and Miami.
Inditex reported that the new fiscal year has started strongly, with sales up 9% in the period between February 1 and March 8. The company is also exploring new retail concepts, such as “The Apartment,” which provides a lifestyle-focused shopping environment. Furthermore, the company is expanding its footprint in North America, Norway, and Denmark, while entering the Curacao market for the first time.
Management remains optimistic about the future, projecting a 5% increase in store space for the coming year. They also noted that logistical hubs have remained unaffected by Middle Eastern trade disruptions, ensuring a steady flow of inventory from production centers. With the budget brand Lefties set to debut in the UK, Inditex is positioning itself to compete across every segment of the fashion market.