INDITEX : Interim Three Months 2024 Results

/ In 1Q2024, Inditex continued with a very robust operating performance due to the creativity of the teams and the strong execution of the fully integrated business model

/ The Spring/Summer collections have been very well received by our customers. Sales grew 7.1% to reach €8.2 billion, showing very satisfactory development. Sales in constant currency grew 10.6%

/ Gross profit increased 7.3% to €4.9 billion. The gross margin reached 60.6% (+13 bps versus 1Q2023)

/ All expense lines have shown a favourable evolution. Operating expenses increased 6.4%, below sales growth

/ EBITDA increased 8% to €2.4 billion

/ EBIT increased 10.3% to €1.6 billion and PBT 11.1% to €1.7 billion

/ Net income increased 10.8% to €1.3 billion

/ Due to the strong operating performance, cash from operations has increased markedly

/ Inditex's Board of Directors will propose to the Annual General Meeting a dividend for FY2023 of €1.54 per share. The dividend is composed of two equal payments of €0.77 per share: the first interim payment was made on 2 May 2024 and the final dividend payment will be made on 4 November 2024

/ Inditex continues to see strong growth opportunities. To take our business model to the next level and extend our di¡erentiation further we are developing several initiatives in all key areas for the coming years

/ Spring/Summer collections continue to be very well received by our customers. Store and online sales in constant currency between 1 May and 3 June 2024 increased 12% versus the same period in 2023

First quarter 2024: Very strong operating performance

Inditex remains focused on four key areas: A unique fashion proposition, enhancing the customer experience, sustainability, and the talent and commitment of our people.

In 1Q2024, Inditex continued with a very robust operating performance due to the creativity of the teams and the strong execution of the fully integrated business model.

The Spring/Summer collections have been very well received by our customers. Sales grew 7.1% to reach €8.2 billion, showing very satisfactory development. Sales in constant currency grew 10.6%.

In 1Q2024, stores have opened in 28 markets.

On 29 February, Inditex launched its first stores in Uzbekistan at Tashkent City Mall.

On 3 April, Inditex reopened 19 stores of across seven brands and resumed online operations in Ukraine. A total of 48 stores had been reopened in this market.

At the end of the period Inditex operated 5,698 stores. A list of total stores by brand is included in Annex I.

In 1Q2024, the execution of the business model was very strong. Gross profit increased 7.3% to €4.9 billion. The gross margin reached 60.6% (+13 bps versus 1Q2023).

All expense lines have shown a favourable evolution. Operating expenses increased 6.4%, below sales growth. Including all lease charges, operating expenses grew 110 bps below sales growth.

EBITDA increased 8% to €2.4 billion.

EBIT increased 10.3% to €1.6 billion and PBT 11.1% to €1.7 billion.

Annex II includes a breakdown of the Financial Results.

The tax rate applied to the quarterly result is the best estimate for the financial year 2024 based on available information.

Net income increased 10.8% to reach €1.3 billion.

Given the strong execution of the business model, cash from operations has increased markedly.

MILLION EUROS 30 April 202430 April 2023

Cash and cash equivalents7,668 6,572

Short term investments 3,978 3,950

Current financial debt (22) (14)

Non current financial debt 0 0

NET FINANCIAL CASH (DEBT) 11,623 10,508

Due to the robust operating performance over 1Q2024 inventory was 3% lower as of 30 April 2024. Collections are considered to be of high quality.

MILLION EUROS 30 April 202430 April 2023

Inventories 3,566 3,680

Receivables 1,131 1,023

Payables (10,126) (8,765)

OPERATING WORKING CAPITAL (5,429) (4,062)

Second quarter 2024

Spring/Summer collections continue to be very well received by our customers. Store and online sales in constant currency between 1 May and 3 June 2024 increased 12% 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 di¡erentiation 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 places us in a unique market position which provides our business model with great growth potential going forward.

Inditex operates in 214 markets with low share in a highly fragmented sector and we see strong growth opportunities. 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 expects a -2% currency impact on sales in FY2024.

In FY2024, Inditex expects a stable gross margin (+/-50 bps).

In the current year, we are planning investments that will scale our capabilities, obtain e«ciencies and take our competitive di¡erentiation 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.

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 Studio Collection, Zara Man Summer Wardrobe, Pull&Bear Avance, Bershka Cute Utopia or Stradivarius Cowquette are just some of the creative proposals available throughout 2024.

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

Regarding our stores, Zara has launched in new locations such us the Zara Piraeus Tower in Athens (Greece). Additionally, we have made important enlargements and refurbishments in some of our most emblematic stores such as Zara Rivoli Paris (France) and Zara Skokie in Chicago (USA). The brands continue to launch in important locations, for example, Massimo Dutti in Cannes (France), Oysho in Stratford London (UK) and Zara Home's pop-up store in Paris Rue du Bac (France).

Massimo Dutti has now launched on JD.com, in China. Menswear, womenswear and accessories are now available on the platform.

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 will be progressively implemented in all the brands and will be the basis for us to continue deepening the digitalisation of stores and their integration with online platforms in the coming years.

Dividends

As approved in March 2024, Inditex's Board of Directors will propose to the Annual General Meeting a dividend for FY2023 of €1.54 per share. The dividend is composed of two equal payments of €0.77 per share: the first interim payment was made on 2 May 2024 and the final dividend payment will be made on 4 November 2024.

Agreements of the Board of Directors

Inditex´s Annual General Meeting will take place at the Company's registered o«ce on 9 July 2024.

The Board will propose the renewal of Baroness Denise Kingsmill and the appointment of Ms Belén Romana García as independent board members.

Furthermore, the Board will propose the appointment of Ms Flora Pérez Marcote as proprietary director. Ms Pérez Marcote has been acting in Inditex Board as legal representative of Pontegadea Inversiones, S.L., whose tenure will not be renewed due to an amendment in the Spanish Companies Act.

Finally, Ms Anne Lange will leave the Board of Directors once her tenure expires on 14 July 2024. Inditex would like to thank her for her significant contribution to the Board.

Inditex's Board of Directors will propose to the AGM to reduce the mandate of new board members to two years.

The new tenure and the composition of the Board of Directors are aligned with corporate governance best practice.