The Spanish group, which includes top brands such as Massimo Dutti, Pull & Bear and Bershka, reported a profit of 6.22 billion euros ($7.23 billion) in the fiscal year ending January 31.
That marked a six-percent rise on the 5.9 billion it raked in in 2024, which was also a group record, Inditex said.
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The group, which employs more than 160,000 people worldwide, pointed to strong online sales growth of 4.8 percent.
Total sales grew 3.2 percent to reach 39.9 billion euros.
“Sales were positive in all concepts and, in constant currency, in all geographical areas,” the company said in a statement.
Inditex also reported a strong start to its first quarter, with store and online sales between February 1 and March 8 rising nine percent from the same period last year.
The Middle East war has had a “limited” impact so far on its business despite temporary store closures in the region, Inditex CEO Oscar Garcia Maceiras told a news conference.
“We operate in the Middle East through franchises, some of which were closed on certain days since the start of the conflict,” he said, adding “the majority of our network” in the region is now open.
The United States and Israel began striking Iran on February 28, prompting a storm of retaliatory Iranian strikes across the oil-rich Gulf.
Garcia Maceiras said Inditex’s diversified supply chain and operational flexibility would minimise price shocks from the war.
The company is also navigating uncertainties in the United States, Inditex’s second-largest market after Spain, due to President Donald Trump’s trade policies.
Garcia Maceiras said Inditex plans “to continue developing projects and improving our market presence” in the United States despite Trump’s threats to sever all trade with Spain.
Trump made the threat in response to Madrid’s opposition to Washington’s use of its bases against Iran.
With fast-growing budget fashion retailer Shein taking share at the cheaper end of the market, Inditex’s main brand Zara has moved to attract more discerning shoppers and offered more expensive clothing.
The company is also improving its logistics to deliver online orders faster than rivals and investing in larger, more modern stores while it shuts smaller shops.
Inditex said it expects its total retail space to grow by about five percent in 2026 as it continues shifting toward fewer but larger stores. The company increased selling space by 5.3 percent last year.
At the end of January, Inditex operated 5,460 stores worldwide, down by 103 compared with a year earlier.
The company said it plans to invest approximately 2.3 billion euros in 2026 to support long-term growth.
In October, the company opened a new Zara headquarters spanning more than 200,000 square metres near its base in La Coruna in northwestern Spain.