Inditex, the Spanish retail giant behind Zara, reported a strong start to 2026. Net income for the first quarter hit €1.4 billion, a 5.4% increase year-on-year, surpassing market forecasts. Sales rose 5.8% to €8.7 billion, or 8.8% at constant exchange rates, also ahead of analyst expectations.
Gross profit climbed 6.9% to €5.4 billion, driven by improved profit margins. EBITDA, a key measure of underlying earnings, increased 7.3% to €2.6 billion.
Shares of Inditex jumped more than 5% on Wednesday after the company reported an even stronger start to the second quarter. Sales for the period from May 1 to June 1 surged 11.5%, reassuring investors of the brand's resilience amid signs of weakening consumer spending elsewhere.
The solid results from one of the world's largest publicly-listed clothing retailers signal robust consumer appetite heading into the summer, despite a challenging economic and geopolitical backdrop.
Inditex attributed its success to a wide-ranging supply chain and flexible transport network, which helped maintain product flow to stores globally despite recent disruptions. The company acknowledged that geopolitical tensions had impacted sales in the Middle East-a region accounting for roughly 5% of its revenue-and warned of potential future effects.
Other headwinds include higher shipping costs, rising raw material prices, and unfavorable currency movements, which are expected to reduce sales growth by approximately 1% over the full year. Inditex left its overall outlook unchanged and plans to invest about €2.3 billion in the business during the current financial year.