FINWIRES · TerminalLIVE
FINWIRES

Inditex Shares Rise as Fiscal First-quarter Earnings Match Consensus; Sales Momentum Improves

By
Inditex Shares Rise as Fiscal First-quarter Earnings Match Consensus; Sales Momentum Improves

Shares of Industria de Diseño Textil (ITX.MC), d/b/a Inditex, rose over 5% in early Wednesday morning trading in Madrid after the Zara owner reported fiscal first-quarter results in line with market expectations and solid sales growth at the start of the next three-month period.

Attributable net profit for the three months ended April 30 was 1.38 billion euros, up from 1.31 billion euros a year ago, while EPS moved to 0.441 euro from 0.419 euro. The clothing company recorded net sales of 8.75 billion euros, compared with 8.27 billion euros last year.

Analysts polled by FactSet were expecting 1.38 billion euros in net income, 8.72 billion euros in sales and 0.44 euro in EPS.

Inditex, which operates Zara, Pull&Bear and Massimo Dutti, among others, also saw sales picking up at the start of the second fiscal quarter. Revenue for store and online sales, in constant currency, rose 11.5% year over year between May 1 and June 1.

"Inditex has delivered a good start to the year, with 1Q26 sales up +5.8% yoy and +8.8% cFX to to [EUR]8,750m, largely in line with expectations (Cons [EUR]8,750m)," Deutsche Bank Research said in a quick-take note following the earnings release. "Gross margin was a beat, up +67 bps to 61.2% (Cons 60.7%, DBe 60.5%) with opex slightly higher at +31.8% of sales (+6.4% yoy). EBIT of [EUR]1,756 million was a c.1% beat vs consensus ([EUR]1,740m), with EPS of [EUR]0.44 in line with consensus."

The clothing company plans to invest 2.3 billion euros during 2026 to strengthen its store network, digital platforms and logistics infrastructure. "Optimization of stores is ongoing, and we expect this to drive further gains in store productivity," the company said.

For fiscal 2026, Inditex expects a 1% negative currency impact on sales at current exchange rates and a stable gross margin, plus or minus 50 basis points.

Related Articles

Vietnam's Industrial Output, Retail Sales Cool in May
US Markets

Vietnam's Industrial Output, Retail Sales Cool in May

Vietnam maintained its economic expansion in May, posting further increases in industrial output and retail sales, though the pace of growth slowed slightly from the previous month.The industrial production index grew 8.8% from a year ago, decelerating from April's 9.3% expansion. Similarly, retail sales jumped 11.8% year on year, a slight cooldown from the 12.1% growth recorded in April. On a month-on-month basis, industrial output rose 3.3% and retail sales ticked up 0.5% in May.For the first five months of the year, industrial production rose 9.1% and retail sales jumped 11.2%.Analysts consider Vietnam a strong economic performer in Asia, bolstered by its 2025 gross domestic product growth of 8.02%, the second-fastest annual rate since 2011."This growth was driven by strong performances in manufacturing, tourism, exports, consumption, and investments, underscoring the country's resilience and positioning it as one of Asia's standout economic performers in 2025, despite challenging trade tensions and tariff actions," according to a March 27 report from McKinsey & Company.Vietnam's tourism sector remained robust, with international visitors in May climbing 16.5% year on year to 1.78 million.However, the country is not immune to geopolitical issues, such as U.S. tariff hikes and the Middle East conflict, which has driven fuel prices higher. These factors widened the country's trade deficit in May to its highest level since 1990, surging to $5.21 billion from $3.28 billion in April.Exports grew 18% year on year to $46.93 billion, while imports came in at $52.14 billion, up 34% year on year.Vietnam remains vulnerable to global oil price shocks despite the government's introduction of short-term stabilization measures, such as the Fuel Price Stabilization Fund."Vietnam's most pressing energy security challenge is not the immediate turbulence in global oil markets, but the country's structural under‑preparedness for future supply disruptions," East Asia Forum's Cuong Nguyen said."Oil stocks cover only roughly 32 days of demand, well below the 90-day benchmark set by the International Energy Agency, leaving Vietnam without the buffer to withstand prolonged shocks."Nguyen suggested that Vietnam should establish a strategic petroleum reserve and adopt a recalibrated growth model to ensure the country's energy security.

$^HNX$^HSX
India's Services Growth Hits Six-Month High in May, Final PMI Shows
US Markets

India's Services Growth Hits Six-Month High in May, Final PMI Shows

India's services sector expanded at its fastest pace in six months in May, supported by stronger demand and a quicker increase in new business, according to survey data released Wednesday.The HSBC India Services PMI Business Activity Index rose to 59.8 in May from 58.8 in April, marking the strongest rate of expansion since November 2025, beating the consensus forecast of 58.9.The increase was driven by healthy demand conditions, new client wins, and continued growth in new business. New orders rose at the fastest pace in six months, moving further away from the slowdown recorded in March.New export orders also increased, with firms reporting gains from Australia, Canada, France, Germany, Hong Kong, Malaysia, the UAE, and the UK."India's services PMI signaled an expansion in business activity in May, supported by a continued rise in new business," Pranjul Bhandari, chief India economist at HSBC, said."External demand for India-provided services also grew at a faster pace, rebounding after a sharp decline in April. Input cost inflation eased, which in turn reduced pressure on selling prices."Input costs continued to rise during the month, driven by higher prices for food, fuel, gas, labor, and materials. However, cost inflation eased to a four-month low, while charge inflation softened to its weakest level since January.Despite the strong demand environment, business confidence among service providers slipped to a three-month low and remained below the historical average.The broader private sector also strengthened. The HSBC India Composite PMI Output Index rose to 59.3 in May from 58.2 in April, while new business across the private sector increased at the fastest pace in six months.The survey comes as India faces growing pressure from higher energy costs linked to the conflict in Iran, which has pushed up fuel import bills and weighed on the rupee.To cushion the economic impact, authorities have raised fuel prices, curbed gold imports, and tightened foreign-exchange regulations.Bloomberg reported that the Reserve Bank of India is considering a range of measures to stabilize the currency, including a potential interest-rate increase, additional currency swaps, and efforts to attract more dollar inflows from overseas investors, after the rupee recently fell to a record low against the U.S. dollar.Markets are now awaiting the Reserve Bank of India's next monetary policy decision on June 5.Prime Minister Narendra Modi also urged citizens earlier in May to reduce fuel consumption and limit non-essential travel to help conserve foreign-exchange reserves.The outlook is also clouded by weather risks after India lowered its monsoon forecast to 90% of the long-term average, citing the likely emergence of El Niño.Reduced rainfall could hurt agricultural output, raising the risk of higher food inflation and stronger demand for fuel and power.

$^BSE$^NSEI
Vietnam Posts Record High Trade Deficit in May as US Sanctions Loom
US Markets

Vietnam Posts Record High Trade Deficit in May as US Sanctions Loom

Vietnam's trade deficit widened in May to a record high as imports surged 34% amid the ongoing conflict in the Middle East and possible tariffs from the U.S.The Southeast Asian country's trade deficit reached $5.21 billion in May, wider than the $3.28 billion recorded in the previous month, the National Statistics Office said Wednesday.The figure was the largest trade deficit since the beginning of records in 1990, and was worse than Trading Economics' forecast of a $3.41 billion deficit and Bloomberg economists' $3.98 billion deficit forecast.The domestic sector logged a trade deficit of $20.76 billion in the first five months, while the foreign investment sector, including crude oil, logged a $6.96 billion surplus.Imports surged to $52.14 billion during the month, higher than the $49.48 billion seen in the previous month.For the first five months of 2026, imports surged 31% to $229.46 billion, led by purchases from China with $92.6 billion, the NSO said.Exports grew 18% year over year to $46.93 billion but were slower than Bloomberg's growth forecast of 19.7%.For the January-May period, exports jumped 19.5% to $215.66 billion, with the U.S. as Vietnam's largest market at $69.6 billion.The data comes as the U.S. Trade Representative's office introduced a third probe into Vietnam's intellectual property protection and enforcement and its impact on American commerce.Trade Representative Jamieson Greer is looking to consult President Donald Trump for any "responsive action" regarding Vietnam, the office said May 29.The conflict in the Middle East could also cost Vietnam's export-driven economy as crude oil prices rise, Bloomberg reported separately Wednesday.

$^HNX$^HOSE