MADRID (dpa-AFX) - Shares of Inditex - Industria de Diseño Textil SA were gaining around 4 percent in Spanish trading after the clothing major on Wednesday reported higher first-quarter results, as well as higher sales for the second quarter-to- date period on strong demand. Looking ahead for fiscal 2026, Zara owner said it expects a stable gross margin, plus or minus 50 basis points.
Regarding the current second-quarter trading, the company noted that store and online sales in constant currency between May 1 and June 1 increased 11.5 percent from the same period in 2025, positively impacted by calendar effects. Spring/Summer collections continue to be very well received by customers, the firm said.
At current exchange rates, Inditex anticipates a negative 1 percent currency impact on sales for 2026.
For fiscal 2026, the growth of annual gross space is expected to be around 5 percent, accompanied by positive net space contribution and strong online sales.
Further, the firm estimates ordinary capital expenditure of around 2.3 billion euros in 2026.
In the first quarter, net income increased 5.4 percent to 1.38 billion euros from last year's 1.31 billion euros. Earnings per share were 0.441 euro, compared to 0.419 euro a year ago.
Profit before tax grew 5.5 percent year-over-year to 1.8 billion euros.
EBIT grew 7.0 percent year-over-year to 1.8 billion euros, and the growth was 7.3 percent in EBITDA to 2.6 billion euros.
Net sales for the quarter increased 5.8 percent to 8.75 billion euros from the prior year's 8.27 billion euros. Sales in constant currency grew 8.8 percent.
Further, Inditex said its Board of Directors, as approved in March 2026, will propose at the Annual General Meeting on July 7 a dividend for fiscal 2025 of 1.75 euros per share, comprising an ordinary dividend of 1.20 euros and a bonus dividend of 0.55 euro per share.
The final dividend of 0.875 euro per share will be paid on November 2.
Inditex added that Rodrigo Echenique Gordillo will leave the Board once his tenure expires on July 12. The Board will propose the appointment of José Ignacio Goirigolzarri Tellaeche as an independent director.
In Spain, the shares were trading at 54.92 euros, up 4.25 percent.
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