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Zara owner Inditex defies consumer gloom with strong early summer sales
- Zara owner Inditex reported a strong start to summer trading on Wednesday as currency-adjusted sales grew 11.5% in May, beating analyst expectations despite Iran war inflation concerns denting consumer confidence.
- Inditex posted sales of €8.75 billion over its February-to-April first quarter, rising 8.8% in currency-adjusted terms as investor relations director Gorka Garcia-Tapia Yturriga noted performance remained noteworthy amid wider macroeconomic challenges.
- Profitability improved as gross margins reached 61.2%, demonstrating the retailer successfully protected profits despite higher raw material and freight costs. CFO Andres Sanchez said the impact of high fuel and transportation prices "has so far been limited."
- Shares gained 5% as investors reacted to healthy sales and a net cash position of 10.8 billion euros. The company launched a collection featuring Puerto Rican superstar Bad Bunny to attract new shoppers.
- While Swedish rival H&M reported slipping sales, Inditex continues expanding its budget-friendly Lefties concept, which added eight stores this quarter. The company maintains a 5% selling space growth target and €2.3 billion capital expenditure plan for the year.
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Zara owner Inditex defies consumer gloom with strong early summer sales
·New York, United States
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During this period, the company also increased its sales by 5.8%, to 8,750 million euros.
Inditex recorded a net profit of 1,375 million euros during the first quarter of its fiscal year 2026-2027 (between February 1 and April 30), which represents an increase of 5.4% over a year earlier, according to the group’s report on Wednesday. Sales, for their part, grew by 5.8% and reached 8,750 million euros. Sales at a constant exchange rate grew by 8.8%, while the gross margin grew by 6.9% to 5,359 million euros and stood at 61.2% (+67 bas…
Coverage Details
Total News Sources22
Leaning Left2Leaning Right3Center6Last UpdatedBias Distribution55% Center
Bias Distribution
- 55% of the sources are Center
55% Center
L 18%
C 55%
R 27%
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