Zara parent Inditex said first-half 2026 net sales reached €19.8 billion, a 7.6% increase from the prior-year period, with constant-currency growth of 9.2% as a projected full-year currency headwind of around 1% weighed on the reported figure. Net income rose 6.8% to €3.0 billion, while gross profit climbed 8.3% to €11.6 billion, lifting gross margin to 58.7%. Chief Financial Officer Andrés Sánchez pointed to the margin as "a demonstration of the good execution of the business model over the period," and management projected full-year 2026 gross margin would remain stable within plus or minus 50 basis points of that level.
Operating expenses grew 8.3%, outpacing revenue because of transport cost pressures stemming from disruptions in the Middle East. The higher expense drag pushed profit before tax to €3.8 billion, up 6.8% with a 19.5% margin, and EBITDA to €5.5 billion, up 7.8%. Chief Executive Óscar García Maceiras said the company delivered a "broad-based performance across geographies, concepts, and channels."
Free cash flow surged 97% to €2.3 billion, driven by funds from operations of €4.1 billion and cash from operations rising 48% to €3.6 billion. Inventories climbed 9% to €3.8 billion, which management described as "high quality," while receivables fell 7% to €1.2 billion and payables rose 11% to €11.9 billion. Operating working capital improved 15% to negative €6.97 billion. Inditex's net cash position exceeded €10 billion.
Capital expenditure for the half was €1.3 billion. Full-year ordinary CapEx is projected at around €2.3 billion, with an additional €200 million earmarked for extraordinary upgrades including a new Barcelona campus.
By brand, Zara — including Zara Home and Lefties — generated €13.8 billion in sales. Bershka contributed €1.7 billion, Stradivarius €1.6 billion, Pull&Bear €1.3 billion, Massimo Dutti €988 million, and Oysho €472 million.
Geographically, Europe excluding Spain accounted for 51.5% of first-half sales, the Americas 17.9%, Spain 15.6%, and Asia and the rest of the world 15.0%. The company operates physical stores in 98 markets and is undertaking retail optimization activities in 51 markets. It employs more than 700 designers and sources from over 50 markets, with 70% of products coming from suppliers with relationships exceeding eight years, supported by 16 primary distribution centers and a single central inventory system. Some 60% of online returns occur in stores and 20% of online orders are picked up in stores; online sales have grown at an 18% compound annual growth rate since 2019.
García Maceiras noted that Inditex commands only about 2% of global market share, leaving substantial room for expansion. He added that behind the product are "our people and their ability to offer our customers what they are looking for," and stated that all concepts continue with "exciting new openings." Management identified 59 markets with sales below €50 million and at least one non-Zara concept as further growth opportunities.
On shareholder returns, Inditex will pay a second dividend installment of €0.875 per share on November 2, bringing the total 2025 dividend to €1.75 per share after a first payment of the same amount on May 4. Shares declined 2.86% to $54.75 following the results, within a 52-week range of $44.34 to $59.42.
