On June 3, Spanish fashion retail giant Inditex reported its financial results for the first quarter of fiscal 2026 (February 1–April 30, 2026). Supported by strong demand for its Spring/Summer collections, the company recorded revenue growth of 5.8% year-over-year to €8.7 billion, while both operating profit and net income increased compared to the prior-year period.
Inditex is one of the world’s largest fashion retail groups, operating brands including ZARA, Massimo Dutti, Pull&Bear, and Bershka.
Summary
- First-quarter 2026 revenue increased 5.8% year-over-year to €8.7 billion
- Gross profit rose 6.9% to €5.4 billion, with gross margin improving to 61.2%
- EBITDA increased 7.3% to €2.6 billion, while net income grew 5.4% to €1.4 billion
- Store and online sales from May 1 to June 1 increased 11.5% in constant currency
- Capital expenditure for 2026 is expected to reach approximately €2.3 billion
Strong Spring/Summer Collections Drive Revenue Growth
Strong customer demand for the Spring/Summer 2026 collections contributed to a solid first quarter for Inditex. Revenue increased 5.8% year-over-year to €8.7 billion, while sales in constant currency grew 8.8%, highlighting resilient demand across global markets.
The company also continued to advance its retail optimization strategy during the quarter, carrying out store refurbishments, relocations, openings, and absorptions across 44 markets. As of April 30, 2026, Inditex operated 5,456 stores worldwide.
Profitability Continues to Improve
Alongside revenue growth, Inditex delivered further improvements in profitability.
Gross profit increased 6.9% year-over-year to €5.4 billion, while gross margin improved to 61.2%, representing an increase of 67 basis points compared to the same period last year.
Operating expenses remained under control, rising 6.4% during the quarter. As a result, EBITDA increased 7.3% to €2.6 billion, while EBIT rose 7.0% to €1.8 billion. Profit before tax reached €1.8 billion, up 5.5% year-over-year, and net income increased 5.4% to €1.4 billion.
The company also maintained a strong financial position, ending the quarter with a net cash position of €10.8 billion.
Strong Start to the Second Quarter
The positive momentum seen during the first quarter has continued into the second quarter.
According to the company, store and online sales between May 1 and June 1, 2026, increased 11.5% in constant currency compared to the same period last year. The company noted that the growth rate was positively impacted by calendar effects.
Accelerating AI Adoption and Store Investments
Looking ahead, Inditex highlighted the flexibility of its supply chain and its proximity sourcing model as key competitive advantages. These capabilities allow the group to respond quickly to changing fashion trends while maintaining operational efficiency.
The company is also expanding the use of artificial intelligence across its operations to support employees and enhance the customer experience.
In addition, Inditex expects ordinary capital expenditure of approximately €2.3 billion in 2026, with investments focused on store optimization, technological integration, and further development of its online platforms.
Board Proposes €1.75 Per Share Dividend for FY2025
The company also reaffirmed its commitment to shareholder returns.
Inditex’s Board of Directors will propose a dividend of €1.75 per share for fiscal year 2025, consisting of an ordinary dividend of €1.20 per share and a bonus dividend of €0.55 per share.
The dividend will be distributed in two equal payments. The first payment of €0.875 per share was made on May 4, 2026, while the second payment of €0.875 per share is scheduled for November 2, 2026.
Board Changes Announced
Alongside its earnings release, Inditex announced several governance updates.
The company confirmed that its Annual General Meeting will be held at its registered office on July 7, 2026.
Rodrigo Echenique Gordillo, who has served on the Board of Directors for many years, will step down upon the expiration of his term on July 12, 2026. The company expressed its gratitude for his significant contribution to the Board.
The Board will also propose the appointment of José Ignacio Goirigolzarri Tellaeche as an independent director at the upcoming Annual General Meeting.
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