Spanish fashion and apparel group Industria de Diseno Textil SA (Inditex) has delivered a solid operating performance in the first half (H1) of fiscal 2026 (FY26), underpinned by the creativity of its teams and the ongoing execution of its fully integrated business model. The company benefited from strong consumer demand for its Spring/Summer collections, driving growth both in physical stores and online channels.
For the six months ended 31 July 2026, net sales increased 7.6 per cent year on year (YoY) to €19.8 billion (~$23.02 billion, as per conversion rate of $1 = €0.8603 as on September 9, 2026). Net income rose 6.8 per cent to €3.0 billion (~$3.49 billion), while earnings before interest and tax (EBIT) climbed 7.6 per cent to €3.8 billion (~$4.42 billion). Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 7.8 per cent to €5.5 billion (~$6.39 billion).
Gross profit advanced 8.3 per cent to €11.6 billion (~$13.48 billion), with gross margin improving to 58.7 per cent, up 40 basis points from the prior year. Funds from operations reached €4.1 billion (~$4.77 billion), representing an 11 per cent increase. The company ended the period with a net cash position of €10.4 billion (~$12.09 billion).
These excellent results highlight the extraordinary capabilities of our teams. In a highly complex global environment, they have succeeded in delivering every day to our customers all around the world the products and fashion experience that they demand. Ambition, flexibility and innovation are key differentiating factors that reinforce Inditex’s long-term growth potential,” said Óscar García Maceiras, CEO, Inditex.
Broad-based sales growth across brands and regions
Sales momentum was broad-based, with all main concepts contributing to growth. Zara (including Zara Home and Lefties) generated €13.8 billion (~$16.04 billion) in sales, while Pull&Bear, Massimo Dutti, Bershka, Stradivarius, and Oysho also posted year-on-year increases.
Geographically, Europe excluding Spain accounted for 51.5 per cent of sales, America 17.9 per cent, Asia and the rest of the world 15.0 per cent, and Spain 15.6 per cent. The company operated 5,444 stores at the period end, following continued retail optimisation activities in 51 markets.
Gross margin improved to 58.7 per cent, supported by positive product reception and operational discipline. Operating expenses rose 8.3 per cent, slightly ahead of sales growth.
Free cash flow more than doubled to €2.3 billion (~$2.67 billion), and inventory increased 9.3 per cent year on year to €3.8 billion (~$4.42 billion), which the company described as high quality.
Inditex maintained a strong net cash position, rising 4 per cent to €10.4 billion (~$12.09 billion).
FY26 outlook
Looking ahead, Inditex expects continued positive momentum, with Autumn/Winter collections well received and store and online sales in constant currency up 9 per cent year on year between August 1 and September 7, 2026.
The company forecasts a stable gross margin for the full year (within +/-50 basis points) and expects annual gross space growth of around 5 per cent.
Inditex plans ordinary capital expenditure of approximately €2.3 billion (~$2.67 billion) and an additional €200 million (~$232.48 million) in extraordinary investments to upgrade corporate facilities.
The company continues to focus on creativity, innovation, and the integration of digital and physical retail channels to underpin long-term growth potential, while ongoing store optimisation and digital initiatives are set to enhance customer experience and productivity.
