Record Profitability and Strong Bottom Line
Net income increased 6% to EUR 6.2 billion; EBITDA grew 5% to EUR 11.3 billion, reflecting disciplined cost control and operating leverage.
Solid Sales Growth
Reported sales rose 3.2% to EUR 39.9 billion; in constant currency sales increased 7%, with positive sales across all concepts, channels (stores and online) and geographies.
Best-in-Years Gross Margin Performance
Gross profit increased 3.9% to EUR 23.2 billion and gross margin improved by ~42 basis points to 58.3%, driven by full-price sales, proximity sourcing and short lead times.
Strong Cash Generation and Balance Sheet
Net cash position of EUR 11 billion at year-end; lease-adjusted funds from operations after fixed lease payments up 7% to EUR 8.2 billion; free cash flow of EUR 4.7 billion.
Positive Short-Term Trading Momentum
Store and online sales in constant currency between Feb 1 and Mar 8 grew 9% year-over-year, and the Spring/Summer collections were well received.
Retail Optimization and Space Efficiency
Over the last 3 years sales grew 22% while store count fell 6% and net space grew 6%, illustrating strategic store footprint optimization. Guidance for 2026 gross space growth ~5% with positive net space contribution to sales.
Committed, Structured CapEx Plan
Ordinary capital expenditure for 2026 expected around EUR 2.3 billion, focused on store base, online platform and technology integration to underpin long-term growth.
Technology Adoption and AI Initiatives
Soft-tag alarm hardware deployed in 100% of stores and planned on 90% of products for Spring/Summer 2026; Try-on AI deployed in 43 markets with over 7 million sessions and being rolled out to other concepts.
Sustainability Progress
Met 2025 water target with a 26% reduction vs 2020; 88% of fibers classified as lower-impact and 47% sourced from recycled materials; Scope 1 & 2 emissions reduced 88% and total S1-3 emissions down 11% vs 2018 baseline.
Talent and Internal Mobility
3.4 million hours of training in 2025; 9,100 internal promotions representing 80% of vacancies filled internally, supporting operational resilience and culture.