Zara’s owner continues to outgrow much of global fashion retail, although higher freight and input costs and a 9.3% inventory increase warrant attention from suppliers.
Inditex reported first-half 2026 sales of €19.76 billion, up 7.6% year on year and 9.2% at constant currencies, while net profit increased 6.8% to €2.98 billion. Gross profit rose 8.3% to €11.60 billion, lifting the half-year gross margin 40 basis points to 58.7%.
August strengthens the demand signal
Trading accelerated after the July close. Store and online sales at constant currencies increased 9% between August 1 and September 7, indicating a strong reception for the Autumn/Winter collections despite unusually hot weather across Europe.
Second-quarter sales reached approximately €11 billion, but profitability fell short of market expectations. The quarter’s gross margin was 56.7%, with Inditex citing higher transport and input costs caused by disruption linked to the Middle East conflict. Its shares fell around 3% following the results.
Inventory rises faster than sales
Inventory stood at €3.79 billion on July 31, 9.3% above a year earlier, compared with 7.6% first-half sales growth. Inditex described inventory quality as strong, while its net cash position increased 4% to €10.4 billion.
The group is maintaining heavy investment: €2.3 billion of ordinary capital expenditure is planned for 2026, plus almost €200 million for corporate facilities. Inditex operated 5,444 stores at half-year, continuing its strategy of larger, more productive locations alongside online growth.
What suppliers should watch
For apparel manufacturers, the results remain encouraging: Inditex is generating strong demand while continuing to invest in its global retail and logistics system. But the combination of higher inventories and rising transport costs reinforces the value of short lead times, flexible order quantities and responsive within-season sourcing.
The next signal will be whether 9% early Autumn/Winter growth persists into the key second half. For sourcing partners, sustained sell-through matters more than headline sales growth: it will determine whether Inditex converts its larger inventory position into stronger replenishment orders or tighter purchasing discipline.
