gross margin
-0.5–0.5 pct
FY 2026
official guidance
INDITEX
Last · MCE€54.48-2.96 (-5.15%)stale · yahoo · 83h ago
Market cap€169.7B3.12B sh
P/E · TTM27.0fwd 22.9 · eps 2.02
Beta0.91vs S&P 500
Div yield1.15%annual · TTM
52w range
€44.34€59.42
Volume46.0Ksession
| Revenue | €38.6B |
|---|---|
| Operating income | €7.6B |
| Net income | €5.9B |
| Free cash flow | €7.1B |
| Operating margin | 19.6% |
| Net margin | 15.2% |
| Return on equity | 29.8% |
| Period | 2025 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
BuyHoldSell
Strong execution and structural growth opportunities outweigh near-term margin normalization risks.
Inditex delivered a strong Q1:
sales rose 5.8% to €8.7bn (+8.8% constant currency), EBITDA increased 7.3% to €2.6bn, net income rose 5.4% to €1.4bn, and gross margin expanded 67bp to 61.2%. The integrated model, inventory discipline and volume-led growth support a buy stance, but the 11.5% early-Q2 increase is flattered by calendar effects, while fading FX sourcing benefits, higher freight/raw-material costs and rising D&A create a meaningful second-half margin test.
Themes
- Q1 2026 Results
- Gross Margin
- Current Trading
- Supply Chain
- Retail Optimisation
- Us Growth
Near term
Treat the 11.5% May 1–June 1 constant-currency sales increase cautiously: the comparison covered four weeks versus five weeks last year and benefited from calendar effects.
Gross-margin momentum is likely to moderate as the Q1 weaker-dollar sourcing benefit fades and the lagged impact of higher transport and fuel costs reaches COGS.
Monitor whether operating expenses continue to run slightly ahead of sales, particularly as Inditex reinvests in customer experience, stores, logistics and technology.
Middle East trading remains a regional drag, although all approximately 480 franchised stores were open; management did not quantify the impact on group sales.
Longer term
Inditex retains a strong structural proposition through fast trend response, integrated operations, diversified sourcing and multimodal logistics.
The US remains a material runway: management described growth as volume-led and said the company has low market share while pursuing selective expansion.
Retail optimisation remains a multi-year growth and productivity lever, with activity across 44 markets and expected 2026 gross-space growth of approximately 5%.
Stable pricing means growth is primarily volume-driven rather than price-led; this supports customer value positioning but limits pricing-based margin expansion.
Higher depreciation from recent capex and right-of-use assets could constrain earnings conversion as the store, online and technology investment cycle continues.
Red flags
Management repeatedly attributed gross-margin performance to execution but provided limited quantification of the offset from higher freight, fuel and raw-material costs beyond reiterating a broad +/-50bp full-year framework.
The 11.5% current-trading figure is not a clean run-rate indicator because of the four-week period, calendar effects and progressively stronger prior-year comparables.
Management declined to quantify the Middle East impact despite direct analyst questioning, leaving regional downside difficult to model.
OPEX grew 6.4%, ahead of reported sales growth, and management framed stable medium-term margins rather than near-term operating leverage.
D&A rose 8% in Q1 versus 3% in FY2025, with no precise 2026 guidance because of lease structures, recent capex and retail optimisation.
Forward outlook
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Earnings
Reported · 5:30 PM UTC+2
Period
Jul 2026
EPS
$0.52Missed−3.77%
Est. revenue
10.9B
4:30 PM UTC+1
Period
Oct 2026
Est. EPS
$0.64
Est. revenue
10.6B
Earnings transcripts
Press & signals
- Satelight
Luxury groups face inventory squeeze under EU destruction ban
Documents
FormReporting forFiledFlags