Inditex shares rise in Madrid; analysts disappointed by second-quarter margins

(Il Sole 24 Ore Radiocor) - Strong sales figures in August are not enough to prop up Inditex shares in Madrid, where the shares of the parent company of Zara, Bershka and Massimo Dutti – which had reached an all-time high last month – are posting the worst performance on the main index. This is due to lower-than-expected second-quarter profit figures, weighed down by rising costs. Between May and July, gross profit stood at 56.7 per cent of revenue, slightly below analysts’ expectations. Profit margins were affected by rising transport and production costs due to the war in the Middle East, explained Chief Financial Officer Andrés Sánchez during a conference call.

Looking at the detailed financial results, Inditex closed the first half of the financial year at the end of July with sales up 7.6 per cent to 19.8 billion euros and a net profit of 3 billion euros, an increase of 6.8 per cent. The gross margin rose to 58.7% in the half-year (+40 basis points compared with the same period in 2025), whilst operating profit reached €3.8 billion (+7.6%). Sales between 1 August and 7 September rose by 9 per cent compared with the same period in 2025. As for the outlook, the Spanish group expects the gross margin to remain broadly stable in 2026, with a positive or negative variation of 50 basis points compared with the previous year.