11 June 2025
If you are covering the latest financial results from Inditex, parent company of Zara, please find below a comment from Mamta Valechha, consumer discretionary analyst at Quilter Cheviot:
Inditex, the owner of Zara, has reported its Q2 results, with earnings broadly in line despite slightly softer sales. Sales rose by 4.2% in constant currency terms – or 5.3% once adjusted for the leap year – which is slightly ahead of market expectations.
Cost control continues to be a strength for the group, with operating expenses growing more slowly than revenue and gross margins holding steady.
Early signs from the start of Q3 (May to early June) are also encouraging, with sales up around 6% despite some weather-related disruption in Spain with investor expectation at around 6-7%. It is worth noting that comparatives also soften as we go into the quarter.
Looking ahead, Inditex hasn’t given formal forecasts, but it does expect margins to remain stable.
These results will likely fuel further debate among investors, with bears pointing to a normalisation in Inditex’s growth and questioning whether its valuation can be justified, while bulls will highlight its strong track record and resilience in a tough retail environment.
