Inditex starts its 2026 fiscal year at a good pace. The textile group achieved a turnover of 8,750 million euros between February and April, months that make up its first quarter, a record level and which represents a year-on-year growth of 5.8% for the company, which will propose the appointment, José Ignacio Goirigolzarri, as a new independent director to replace Rodrigo Echenique, who is completing his mandate. Goirigolzarri’s appointment will be ratified at the shareholders meeting that will take place on July 7. The stock has responded with a rise of 1.48% at the close of the trading session, up to 53.56 euros.
The net profit in this quarterly period reached 1,375 million, 5.4% more, somewhat below what market estimates said. In this initial period of the year, the company recorded an increase in its operating costs of 6.4%, higher than the increase in sales, something unusual in Inditex’s results. As has been usual in the last year, the increase in the textile company’s income is hindered by exchange effects, which in this first quarter ate up three percentage points of the increase in sales. At constant rates, these would have grown by 8.8%. Effects that the company expects to diminish during the year, as it aims for an impact of 1% for the year as a whole.
Even so, the 5.8% improvement represents the best year-on-year increase in sales since the last quarterly period of fiscal year 2024. Inditex recovers a better sales rate, and even without taking into account the effect of the Bad Bunny phenomenon, which its president Marta Ortega enjoyed at the artist’s first concert in Madrid last week, and which Zara has launched, already in the second quarter, all of this in a geopolitical context marked by the conflict in Iran, which has not been foreign to the owned group. 60% by Amancio Ortega.
Specifically, the impact has translated into higher transportation costs and an impact on sales in the area, as the company recognized in the conference with analysts held after the publication of results, in which the CEO, Óscar García Maceiras, did not participate. The director of investor relations, Gorka García-Tapia, mentioned that these higher transportation costs will be more visible in subsequent quarters. “The context requires great flexibility and adaptability, also in transportation. We are using multiple solutions to have uninterrupted supply,” said the executive. The financial manager, Andrés Sánchez Iglesias, indicated that the 480 stores that Inditex has in the United States, but that this is affecting sales. Even so, both executives highlighted the fact that they continue to register good growth globally despite this situation.
The operating result before taxes, interest, depreciation and amortization (ebitda) reached 2,568 million euros at the end of the quarter, 7.3% more; and the operating result grew by 7%, up to 1,756 million.
On the other hand, the gross margin, an aspect widely observed by analysts when reflecting the profitability of each sale, improved to represent 61.2% of income, 0.6 percentage points more, but the net margin, the proportion that represents the net profit over sales, fell from 15.8% to 15.7%.
Second trimester
The financial information made public reflects a good trend in income at the start of the second quarter. Between May 1 and June 1, physical and online sales grew 11.5% at constant exchange rates, partly thanks to a positive impact from calendar effects, according to the company.
“Inditex has a presence in 215 markets, with a low share in each of them and in a highly fragmented sector, so we see strong growth opportunities,” says the company, a message also common in its results presentations.
It continues with its process of optimizing its store network, which involves closures, relocations or renovations. As of April 30, the group operated 5,456 establishments, 106 less than a year earlier. Almost half correspond to Zara establishments. All the group’s brands, except Lefties, lose stores compared to the first quarter of 2025.
As already announced in the presentation of annual results in March, the company foresees a growth of around 5% in its gross area for the year, “accompanied by a positive contribution from the space for sale in that period and strong online sales.” In addition, Inditex is making ordinary investments of 2.3 billion this year to optimize commercial space, technology and improve its online platforms.
Shareholders meeting
The company also launched this Wednesday its call for an annual shareholders meeting, which will take place on July 7 at its headquarters in Arteixo (A Coruña).
The most innovative points are the proposed appointment of José Ignacio Goirigolzarri as independent director to replace Rodrigo Echenique, who does not renew his mandate. The current president of the Santander Foundation and former president of Banco Popular and Vocento, was a director of the group since 2014.
Yes, they will renew the president, Marta Ortega; the CEO, Óscar García Maceiras; Flora Pérez, representative of the first shareholder, Amancio Ortega; and the independent directors Denise Patricia Kingsmill, Pilar López and Belén Romana.
EY will also be re-elected as auditor of the accounts for the financial year 2026. It has audited Inditex’s financial reports in the last four years. Starting in 2027, as reported by the textile giant, Deloitte will be in charge of doing so until 2029.
