Industria de Diseño Textil, S.A.

Buenos dias a todos. Good morning to everybody. We would like to extend a warm welcome to all those attending the presentation of Inditex's results for the interim three months 2025. I'm James O'Shaughnessy, Investor Relations. This presentation will be hosted by Inditex's CEO, Oscar García-Macedas, as well as by our new Chief Financial Officer, Andrés Sánchez, and Gorka García-Tapia, Director of Investor Relations. After the presentation, there will be a question and answer session starting with the questions received on the phone, followed by those received via the webcast platform. Before we start, we'll take the disclaimer as read. Over to you, Oscar.

Good morning and welcome to our first quarter 2025 results presentation. First, I would like to welcome Andrés, who will be heading up the finance function as our CFO. Andrés has been with the company in the finance department for over 15 years. In the first three months of 2025, Inditex has maintained a solid operational performance led by the creativity of our teams and the strong execution of the fully integrated business model. This performance was driven by the four key pillars that we have highlighted to you in the past. Our strong product offering, a unique customer experience, a keen focus on sustainability, and the talent and commitment of our people. These are the principal factors driving our ability to differentiate ourselves so consistently. Our Spring Summer collections have been well received by customers. The sales in the period grew 1.5%. Sales in custom currency increased by 4.2%. Adjusted for the impact of the lead year, the sales growth was 5.3%. The business model continues to perform effectively, driving stable gross margins supported by disciplined cost management. On the bottom line, net income increased by 1% to 1.3 billion euros. Our positive performance has continued going into the second quarter. Store and online sales in custom currency between the 1st of May and the 9th of June grew 6%. Our diversified presence in 214 markets with low market penetration permits us to leverage significant global growth opportunities. It has been 50 years since Zara opened its first store in A Coruña, Calle Juan Flores, a store that has remained open and was recently refurbished. Having reached this relevant milestone, we have complete confidence in our ability to grow our business, mainly because the unique model we operate continues to drive an ever increasing level of differentiation. And now, over to Andrés to go over the headline numbers.

Thank you, Oscar. I am very pleased to be here today. As you can see from today's financial release, Inditex produced a sound performance in the interim three months of 2025. Sales over the period grew by 1.5%. We have managed the supply chain actively, which is evidence in the robust gross margin performance, illustrating well the flexibility of the business model. Likewise, operating expenses have been rigorously managed over the period, and this has resulted in operating expenses only growing by 2.3%. EBITDA in turn grew 1% to 2.4 billion euros. Moving down the P&L, we have also seen fair progress on the net income line, with an increase of 1% to 1.3 billion euros, maintaining a strong level of profitability. We generated a reasonable level of sales growth at plus 1.5% to reach 8.3 billion euros. That's 4.2% in constant currency, This growth was 5.3% adjusted for the calendar effect of the leap year. Based on current exchange rates, we expect a minus 3% currency impact on sales for the full year 2025. In the first quarter of 2025, gross profit increased 1.5% to reach 5 billion euros and clearly illustrates a good execution of the business model over the period. The cross margin reached 60.6%, remarkably stable. Once again, demonstrating well the flexibility of the business model. Based on current information, we would like to reiterate our cross margin guidance for the year of plus minus 50 basis points. As you can clearly see, we continue to exercise rigorous control of operating expenses across all departments and business lines. All expense lines have been tightly controlled and show a favorable evolution. Operating expenses increased 2.3%. This cost efficiency contributed to the strong PVT margin of 20.2%. Over the first quarter of the year, we experienced a robust operating performance. Inditex's inventory as of the 30th of April was 6% higher. The end of period inventory is considered to be of high quality. And now, over to you, Gorka.