Inditex’s share price slips following disappointing half-year profit figures
The half-year ended with net sales up 7.6 per cent to 19.8 billion and a net profit of 3 billion euros, an increase of 6.8 per cent
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Key points
Strong sales growth was not enough for Inditex to meet operating profit expectations. And that was enough for the market to send the share price lower; it closed the trading session in Madrid down 3.6 per cent at €54.48 per share.
Performance in the first half of the year
More specifically, in the first six months of this year, the group recorded a 7.6 per cent increase in sales to 19.8 billion euros, ‘with a satisfactory performance in both physical and online stores’. At constant exchange rates, sales rose by 9.2 per cent. In terms of profitability, gross profit rose by 8.3 per cent to €11.6 billion, whilst the gross profit margin stood at 58.7 per cent, up 40 basis points compared with the first half of 2025. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 7.8 per cent to €5.5 billion, whilst EBIT increased by 7.6 per cent to €3.8 billion. Finally, net profit grew by 6.8 per cent to €3 billion, whilst Funds from Operations (FFO) totalled €4.1 billion, up by 11 per cent. In light of these results, Inditex has also confirmed the final dividend for the 2025 financial year, amounting to €0.875 per share, which will be paid on 2 November 2026.
Market disappointment
Market estimates were, however, slightly higher than the figures released yesterday by the group, and this was enough to trigger a sell-off in the shares of the group, whose portfolio includes brands such as Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius and Oysho. Since the start of the year, the share price has fallen by 3.3 per cent, mainly due to yesterday’s declines, whilst over the last twelve months it has risen by 27.74 per cent.
Chief Executive Óscar García Maceiras, for his part, highlighted the targets achieved: “These excellent results demonstrate the extraordinary capabilities of our teams. In a particularly complex global environment, they have managed to provide customers around the world with the products and fashion experience they demand, day in, day out. Ambition, flexibility and innovation are key distinguishing factors that reinforce Inditex’s long-term growth potential.”
