Inditex eyes further growth as sales, earnings spark
11th Mar 2026 07:44
(Sharecast News) - Zara-owner Inditex posted a jump in annual sales and earnings on Wednesday and said the current year had got off to a solid start.
The Spanish retail giant saw net sales rise 3.2% in the year to 31 January 2026, to €39.9bn, with "very satisfactory development" both online and in store. On a constant currency basis, sales were 7% stronger. Net income rose 6% to €6.2bn.
Mass market fashion chains such as Inditex and closest rival H&M have faced uncertain consumer demand in their core US and European markets, hit hard by geopolitical tensions, higher prices and a weak economic outlook. Competition from cheaper rivals such as Shein has also spiked.
However, chief executive Oscar Garcia Maceiras said of the 2025 numbers: "These results reflect the ability of our teams to honour the trust that millions of customers place in our eight commercial formats every day."
Looking to the current year, Inditex - which also owns Pull&Bear, Massimo Dutti and Bershka, among others - said it had a "strong commitment" to profitable growth, with gross space set to increase by around 5%. Inditex currently has around 5,500 stores in 214 markets.
It also noted that spring/summer collections had so far been well received, with sales up 9% on a constant currency basis between 1 February and 8 March. Analysts had been expecting growth of between 8% and 12%.
Inditex's Madrid-listed shares were up 1% as at 0945 GMT, having pared back slightly earlier gains.
Jefferies, which has a 'buy' rating on the stock, said: "The year has started solidly, notwithstanding an unquantified impact from Middle East disruption, and potentially very rainy conditions in Iberia, even if it is unclear whether investors were hoping for closer to10%.
"Both guidance for flat general merchandising and forex impact of -1% are aligned with consensus. The drivers for mid-teens total shareholder returns remains well mapped out. This in our mind is deserving of a fuller valuation."