For the first time in modern maritime history, both of the Middle East’s critical shipping chokepoints—the Strait of Hormuz and Bab el-Mandeb (Red Sea)—are simultaneously closed or under active threat to major commercial shipping. Following the launch of US-Israeli strikes on Iran on February **, ****, Iran declared the Strait of Hormuz closed to Western-allied vessels within ** hours. Tanker traffic collapsed from approximately *** vessels per day to near-zero. Within the same **-hour window, Houthi forces in Yemen threatened to resume attacks on Red Sea shipping, forcing Maersk to re-pause all trans-Suez sailings just weeks after a **-month diversion had finally ended.

All four major global container carriers—Maersk, MSC, CMA CGM, and Hapag-Lloyd—suspended Gulf transits on March *. P&I war risk insurance was cancelled by more than ** International Group clubs, effective March *. Dubai’s Jebel Ali port, the critical transshipment hub for South Asian textile manufacturers, has been struck by Iranian missiles and drones, operating at severely reduced capacity. Gulf airline cargo capacity—Emirates, Qatar Airways, Etihad—is down by over ** per cent, crippling the air freight corridor that Bangladesh’s garment exporters depend on for time-sensitive deliveries to Europe.

The sector has navigated shocks before, including price wars, factory compliance reforms, political instability and swings in global demand. What makes the current moment different is the simultaneity of pressures. Financial strain, weakening export momentum, rising competition and geopolitical disruptions are emerging at the same time, just as Bangladesh approaches a major transition in its global trade status.

According to export performance data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), compiled from Export Promotion Bureau (EPB) statistics, Bangladesh’s ready-made garment (RMG) exports reached $**.** billion between July **** and January ****, accounting for about ** per cent of the country’s $**.** billion merchandise exports. The International Labour Organization estimates that the export-oriented garment sector employs around * million workers, highlighting the scale of an industry central to Bangladesh’s economy.

Spanish fashion house Inditex has reported net sales of €39.9 billion (~$46.28 billion) in fiscal 2025 (FY25), an increase of 3.2 per cent year on year (YoY), reflecting strong customer demand across both physical stores and online channels. At constant currency, sales grew 7 per cent and recorded positive performance across all brand concepts and geographic markets.

Profitability also improved during the year. Gross profit rose 3.9 per cent to €23.2 billion (~$26.91 billion), while the gross margin expanded to 58.3 per cent. Operating expenses increased 2.8 per cent, remaining below the pace of sales growth as the group maintained disciplined cost management.

Inditex has reported net sales of €39.9 billion (~$46.28 billion) in FY2025, up 3.2 per cent YoY, while sales rose 7 per cent at constant currency.
Gross profit reached €23.2 billion (~$26.91 billion) with a margin of 58.3 per cent, and net income grew 6 per cent to €6.2 billion (~$7.19 billion).
Online sales rose 4.8 per cent.
The group plans €2.3 billion (~$2.67 billion) capital expenditure in 2026.

The operating performance remained robust across key indicators. EBITDA increased 5 per cent to €11.3 billion, while EBIT rose 5.9 per cent to €8 billion. Profit before tax also reached €8 billion, up 5.8 per cent YoY, with the PBT margin standing at 20.1 per cent. Net income grew 6 per cent to €6.2 billion (~$7.19 billion), Inditex said in a press release.

Online business continued to expand, with digital sales rising 4.8 per cent to €10.7 billion. Inditex said the integration of stores and online platforms remains central to its omnichannel strategy, enabling seamless customer experiences worldwide.

The group’s store network also evolved during the year. Inditex opened stores in 41 markets and carried out 190 store openings, 217 refurbishments—including 96 enlargements—and 293 absorptions as part of its ongoing retail optimisation strategy. At the end of FY2025, the company operated 5,460 stores globally, while total selling space increased 5.3 per cent to 4.72 million square metres.

Zara, including Zara Home and Lefties, remained the group’s largest contributor with sales of €28.05 billion, followed by Bershka at €3.29 billion and Stradivarius at €3 billion. Europe excluding Spain accounted for the largest share of sales at 51.3 per cent, followed by the Americas with 17.8 per cent, Asia and the rest of the world at 15.0 per cent, and Spain at 15.9 per cent.

Inditex maintained a strong balance sheet during the year. Lease-adjusted funds from operations rose 7 per cent to €8.2 billion, while the group ended the fiscal year with a net cash position of €11 billion.

“These results reflect the ability of our teams to honour the trust that millions of customers place in our eight commercial formats every day. Connecting with them, understanding their desires and delivering the best product and a differentiated experience underpin our long-term growth expectations,” said Oscar Garcia Maceiras, CEO at Inditex.

The company’s board will propose a dividend of €1.75 per share for FY2025, comprising an ordinary dividend of €1.20 and a bonus dividend of €0.55. The dividend will be paid in two instalments of €0.875 per share in May and November 2026.

Looking ahead, Inditex plans to continue investing in its growth strategy. The group expects gross selling space to expand by around 5 per cent in 2026 alongside continued online growth. Ordinary capital expenditure is projected at approximately €2.3 billion (~$2.67 billion), primarily aimed at optimising store networks, enhancing technological integration and strengthening online platforms.

Early trading in 2026 has also been encouraging. Store and online sales in constant currency increased 9 per cent between February 1 and March 8 compared with the same period in 2025, supported by strong customer response to the Spring/Summer collections.

Fibre2Fashion News Desk (SG)