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Inditex Reports Higher First-half Results Amid 'Highly Complex Global Environment'

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Inditex Reports Higher First-half Results Amid 'Highly Complex Global Environment'

Industria de Diseño Textil (ITX.MC), d/b/a Inditex, reported on Wednesday that key financial results for the first half increased year over year amid a complicated operating environment.

For the six months ended June 30, the Spanish clothing company's attributable net profit rose to 2.98 billion euros, compared with 2.79 billion euros in the prior-year period. Net sales grew to 19.76 billion euros from 18.36 billion euros.

"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," commented Chief Executive Officer Óscar García Maceiras.

Inditex, which currently operates in 215 markets, also said its recently released autumn/winter collections "have been very well received," with store and online sales between Aug. 1 and Sept. 7 up 9% in constant currency from the same period a year ago.

The company expects to log 5% annual gross space growth for 2026 amid an ongoing store optimization drive. Revenue-wise, the group anticipates a negative 1% currency impact on its sales in the year, based on current exchange rates.

"Inditex has reported its H1 results today, with Q2 sales slightly ahead of our forecast, EPS a bit light mainly due to higher opex, but recent trading very reassuring," RBC Capital Markets said in a quick-take note following the earnings release. "Inditex has a strong track record and has generated very high single-digit top- and bottom-line growth over the last 10-15 years, with a strong ROCE of well over 20%. FCF should also inflect positively this year following a period of extraordinary capex on logistics."

As of midday trading, shares of the company declined almost 4%.

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