Company Reports

Inditex reported continued strong revenue growth in the first half, with sales up 9.2% in constant currencies (8.8% in the first quarter). However, margin fell short of market expectations, coming in flat in the first half (up 30 basis points in the first quarter). Shares fell 5% on Sept. 9.

Inditex delivered strong 8.8% constant-currency growth in the first quarter. Remarkably, profitability also continued to expand with 67-basis-point growth in gross margin and a 30-basis-point EBIT margin increase.

Inditex is the number-one apparel company by revenue in Western Europe and globally. It follows a so-called fast-fashion business model, which involves feedback loop-driven design and small batches of supplies at attractive prices. This allowed it to gain market share from not only midprice players but even luxury ones in the apparel segment.

Inditex reported solid constant-currency sales growth of 7% in 2025 and delivered EBIT margin of 20.1%, a 50-basis-point expansion driven largely by better gross margin. The shares are trading slightly higher after the earnings release.

Inditex reported accelerating sales in the third quarter and at the start of the fourth quarter, with revenue up 8.4% in constant currencies in the quarter and up 10.6% between Nov. 1 and 1 Dec. 1. This compares with 5.1% growth in the first half of the year.

Inditex is the number-one apparel company by revenue in Western Europe and globally. It follows a so-called fast-fashion business model, which involves feedback loop-driven design and small batches of supplies at attractive prices. This allowed it to gain market share from not only midprice players but even luxury ones in the apparel segment.

Inditex reported 5% constant-currency sales growth in the first half of 2025, with EBIT margin coming under slight pressure. Markets seem to have judged positively the recent pickup in sales growth to 9% between Aug. 1 and Sept. 8, 2025, sending shares 6% higher.

Narrow-moat Inditex's shares dropped by 5% after the company released first-quarter results with softer revenue and profit progression compared with post-covid trends.

Inditex is the number-one apparel company by revenue in Western Europe and globally. It follows a so-called fast-fashion business model, which involves feedback loop-driven design and small batches of supplies at attractive prices. This allowed it to gain market share from not only midprice players but even luxury ones in the apparel segment.

We are maintaining our fair value estimate for narrow-moat Inditex as the company reported a strong closing to 2024, largely in line with our expectations. We continue viewing shares as expensive, based on our forecasts for long-term high-single-digit revenue growth and broadly stable margin. Shares are under pressure following the results, after a disappointing start to the year with only 4% constant-currency growth from Feb. 1, 2025 to March 10, 2025. We believe it’s too early to extrapolate the slowdown into the future.

We are maintaining our fair value estimate for narrow-moat Inditex as the company continued to deliver solid operating results in the third quarter. We see shares as expensive at current levels, trading in 1-star territory.

We are maintaining our fair value estimate of EUR 37 per share for narrow-moat Inditex as the company reported strong revenue and profit growth in the first half of the year.

We are increasing our fair value estimate for narrow-moat Inditex to EUR 37 per share from EUR 35 following continued solid trends in the first quarter and as we adjust our near-term projections slightly upward. At current levels, the shares look expensive. While we expect above-industry revenue growth to continue, we believe there is less room for margin expansion, given Inditex’s best-in-class operational efficiency and the competitiveness of the apparel industry (meaning that some efficiency gains may need to be reinvested in customer offerings.)

Inditex is the number-one apparel company by revenue in Western Europe and globally. It follows a so-called fast-fashion business model, which involves feedback loop-driven design and small batches of supplies at attractive prices. This allowed it to gain market share from not only midprice players but even luxury ones in the apparel segment.

We are maintaining our fair value estimate of EUR 35 per share for narrow-moat Inditex after the company reported another set of strong full-year results. While revenue practically matched our forecasts, its operating profit exceeded our expectations, delivering a margin of 18.9% (we forecast 18%) on the back of a stronger gross margin (57.8% or 80-basis-point improvement from last year). While we believe Inditex should continue growing through market share gains, we think further margin progress could be more limited given the competitiveness of the apparel sector.

We are maintaining our fair value estimate of EUR 35 for narrow-moat Inditex as the company continues to deliver strong revenue growth and operating profit growth in the first 9 months of 2023. At current levels, shares are approximately fairly valued.

We are maintaining our EUR 35 fair value estimate for narrow-moat Inditex as the company reported continued solid growth momentum in the second quarter. Sales in the first half grew by 16.6% at constant currency versus 15% in the first quarter. Sales from Aug. 1 to Sept. 11 were up 14%, continuing on a strong double-digit trajectory that has been observed since 2021. We believe at current levels shares are approximately fairly valued as we expect the company to return to high-single-digit revenue growth (in line with the last 5-year average trend), achieved largely through market share gains as in prior years, but with less of a pricing impact compared with 2022-23. We also don’t expect significant margin expansion as efficiency improvements are likely to be reinvested in customer offerings in a competitive and fragmented apparel industry.

Industria de Diseno Textil, or Inditex,is the number-one apparel company by revenue in Western Europe and globally. It follows a so-called fast-fashion business model, which involves feedback loop-driven design and small batches of supplies at attractive prices. This allowed it to gain market share from not only midprice players but even luxury ones in the apparel segment.

We view shares of Inditex as approximately fairly valued, after they gained more than 50% in value over the past year, significantly outperforming the Stoxx Europe 600 Index. The start to 2023 was better than expected as the company reported continued strong double-digit sales growth and margin improvement in the first quarter.

We maintain our fair value estimate of EUR 32 for narrow-moat Inditex as the company reported very solid full-year results despite headwinds from inflation and discontinued operations in Russia and Ukraine. Inditex remains our preferred pick in European apparel, trading in 4-star territory with around 10% upside to our fair value, even despite 30% price appreciation over the last year and significantly exceeding STOXX Europe 600 Index’s low-single-digit performance.