Inditex Q1 Performance
Zara Owner Inditex Reports Strong Q1 Profit and Sales Growth, Proposes Dividend Hike
Inditex, the owner of Zara and other brands, reported first-quarter fiscal 2026 profit and revenue growth, with net income rising 5.4% to about €1.4 billion and sales increasing 5.8% to €8.7 billion. In constant currency, sales grew 8.8%, and the company said spring/summer demand remains strong, supported by its integrated store-and-online model. Profitability also improved, with gross margin up to 61.2% and EBIT up 7% to roughly €1.8 billion, while expense growth stayed relatively contained. For the near term, Inditex reported store and online sales from May 1 to June 1 increasing 11.5% in constant currency, benefiting from calendar effects. For fiscal 2026, it expects a stable gross margin (plus or minus 50 basis points), a roughly -1% currency impact on sales at current exchange rates, about 5% growth in gross retail space, and ordinary capex around €2.3 billion. The board will propose a €1.75 per share dividend for fiscal 2025 and plans a board transition with Rodrigo Echenique Gordillo leaving at the end of his term.
Key Points
Inditex said the proposed FY2025 dividend of €1.75 per share will be split into an ordinary dividend of €1.20 and a bonus dividend of €0.55, paid in two instalments of €0.875 each: an interim payment on 4 May 2026 and a final payment on 2 November 2026.
In the quarter, Inditex reported a profit-before-tax (PBT) margin of 20.1%, with PBT rising 5.5% to €1.8 billion.
Inditex detailed operational retail activity: it completed “Retail Optimisation” (refurbishments, relocations, new openings and absorptions) across 44 markets and operated 5,456 stores by the end of the period.
Inditex highlighted balance-sheet strength, reporting a net financial position of €10,796 million at the close of April 2026 (slightly above €10,778 million a year earlier), with cash and cash equivalents of €5,045 million.
For board succession, Inditex said Rodrigo Echenique Gordillo would leave when his term expires, and that it will propose appointing José Ignacio Goirigolzarri Tellaeche as an independent director.
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