10 September 2025
If you are covering Inditex’s latest financial results, please find below a comment from Mamta Valechha, consumer discretionary analyst at Quilter Cheviot:
“Zara’s parent company’s, Inditex, results for May to July are fairly encouraging after both revenue and earnings came in line with expectations. What was most heartening from today’s update is that Inditex reported an acceleration in current trading as it heads into the autumn months.
“Despite pressures around tariffs and weaker consumer confidence, the group has managed to keep costs tightly controlled. As a result, this has kept margins flat, despite those pressures, but crucially still very strong. However, Inditex remains somewhat at the mercy of currency fluctuations, with Spain, and the rest of Europe, seeing solid revenue growth, and the US down as a result of a weaker dollar. Inditex does not give any formal guidance, but the group continues to expect stable gross margins, and this is in spite of the group guiding towards higher currency headwinds, given the continued strength of the Euro and the relative weakness of the dollar.
“On current trading, Inditex’s third quarter has started off well, with an acceleration in topline growth by 9%, which is ahead of investors’ expectations, and has been taken positively with the shares up over 6%.
“Today’s results demonstrate the strength of Inditex’s business model. In the midst of macro pressures, foreign currency headwinds and weather variances across regions, the group continues to benefit from good traction from consumers, and very impressively continues to maintain its margins.”
