Spanish fashion retail giant Inditex, the owner of Zara, has reported solid first-quarter (Q1) fiscal 2026 (FY26) results, supported by strong customer response to its Spring/Summer collections, improved margins and continued growth across stores and online channels.
The company posted sales of €8.7 billion (~$10.09 billion) in the quarter ended April 30, 2026, up 5.8 per cent year-on-year (YoY). The gross profit rose 6.9 per cent to €5.4 billion (~$6.26 billion), with the gross margin improving by 67 basis points (bps) to 61.2 per cent.
The operating expenses increased 6.4 per cent during the quarter, while EBITDA climbed 7.3 per cent to €2.6 billion. EBIT rose 7 per cent to €1.8 billion and profit before tax (PBT) increased 5.5 per cent to €1.8 billion, with the PBT margin reaching 20.1 per cent.
Strong operational execution supports growth
The net income increased 5.4 per cent YoY to €1.4 billion (~$1.62 billion).
“In 1Q 2026, Inditex maintained a solid operational performance led by the creativity of our teams and the strong execution of the fully integrated business model,” the company said in a statement.
Inditex said its Spring/Summer collections had been ‘very well received’ by customers, contributing to strong store and online performance across markets.
The group carried out retail optimisation activities, including refurbishments, relocations, openings and absorptions, across 44 markets during the quarter. At the end of the period, Inditex operated 5,456 stores globally.
The company’s net cash position stood at €10.8 billion at the end of the quarter, broadly stable compared to the same period last year.
Inditex enters Q2 with strong sales momentum
Inditex also reported strong momentum entering the second quarter. Store and online sales in constant currency between May 1 and June 1, 2026, increased 11.5 per cent compared to the same period last year, supported partly by calendar effects.
Looking ahead, the company said its flexible sourcing model, proximity manufacturing strategy and investments in technology continue to strengthen its market position.
“Artificial intelligence is increasingly embedded across the group’s operations, supporting our teams and enhancing the customer experience. Sustainability is central to our strategy,” Inditex said.
The retailer expects gross space growth of around 5 per cent in 2026, supported by store optimisation and continued online expansion. It also anticipates a negative 1 per cent currency impact on sales during the year.
Inditex plans ordinary capital expenditure of around €2.3 billion in 2026, mainly focused on store optimisation, technological integration and improvements to online platforms.
Fibre2Fashion News Desk (SG)
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: feeds.feedburner.com
