Inditex, the parent company of Zara, reported first-half 2026 sales of 19.8 billion euros, up 7.6% in reported terms and 9.2% in constant currency. Net income rose 6.8% year over year to 3 billion euros. Gross profit increased 8.3% to 11.6 billion euros, while gross margin remained stable at 58.7%. EBITDA rose 7.8% to 5.5 billion euros, and profit before tax grew 6.8% to 3.8 billion euros, a 19.5% margin. Operating expenses rose 8.3%, and funds from operations increased 11% to 4.1 billion euros. The company said its net cash position exceeded 10 billion euros, and inventory was 9% higher as of July 31, in line with sales development.
Inditex shares fell 2.84% to $54.76, from a previous close of $56.36. The stock's 52-week range was $44.34 to $59.42. In a recent trading update, the company said store and online constant-currency sales grew 10% between August 1 and September 7; the transcript also referenced a 9% constant-currency increase for the same period.
For full-year 2026, Inditex expects gross space growth of around 5% and gross margin stability within plus or minus 50 basis points. Management also expects a 1% currency headwind on full-year sales. First-half capital expenditure was 1.3 billion euros. Full-year ordinary capital expenditure is expected to be around 2.3 billion euros, with close to 200 million euros of extraordinary spending for corporate facility upgrades, including a new Barcelona campus.
Inditex operates eight concepts and said it commands a 2% global market share. Bershka, Stradivarius and Oysho each generate more than 1 billion euros in annual sales. Bershka's four-year compound annual growth rate from 2022 to the first half of 2026 was 12%, while Stradivarius's was 15%. The group operates physical stores in 98 markets, with expansion to 99 markets following an opening in Curaçao, and has an online presence in 215 to 250 markets. It operates approximately 480 stores in the Middle East through franchise arrangements.
Recent openings included Bershka's first U.S. store in Aventura, Miami, in August and a second store in Brazil at BarraShopping, also in August. Stradivarius opened its first store in Munich at Riem Arcaden, while Massimo Dutti opened its first street-level store in Korea in Seoul's Hannam district. Lefties opened its first U.K. store in Liverpool One in August and its first store in France at Valvert Croix-Blanche in May. Zara added or expanded locations in Mexico's Los Cabos, London's Bond Street, Seoul's Gangnam district and Belgium's Ostend.
Chief Executive Officer Óscar García Maceiras said the strength and resilience of the company's business model was evident, adding that product is at the heart of the model and that people are behind the product. He said that despite consistent growth, the group commands a mere 2% global market share, offering room for growth. Chief Financial Officer Andrés Sánchez said gross margin served as a demonstration of good execution of the business model during the period.
