Inditex (ITX) Q1 2026 earnings summary

Executive summary

• Sales grew 5.8% year-over-year to €8.75 billion in Q1 2026, with net income up 5.4% to €1.4 billion and strong commercial execution despite macroeconomic and geopolitical uncertainty.

• Spring/Summer collections were well received, driving robust store and online sales growth.

• Retail optimisation activities occurred in 44 markets, with 5,456 stores at quarter-end.

• Continued focus on long-term strategy, global expansion, and investments in store openings, refurbishments, and technology.

Financial highlights

• Net sales reached €8.75 billion, up 5.8% year-over-year; constant currency sales growth was 8.8%.

• Gross profit increased 6.9% to €5.4 billion, with gross margin rising 67 basis points to 61.2%.

• EBITDA grew 7.3% to €2.6 billion; EBITDA margin stood at 29.3%.

• Net income rose 5.4% to €1.4 billion; EPS reached €0.441.

• Net cash position at quarter-end was €10.8 billion.

Outlook and guidance

• Store and online sales in constant currency from 1 May to 1 June 2026 increased 11.5% year-over-year.

• Annual gross space growth expected around 5% in 2026, with positive net space contribution.

• Ordinary capital expenditure for 2026 estimated at €2.3 billion, focused on store base, online platform, and technology integration.

• Gross margin guidance reiterated at ±50 basis points for 2026; expects a -1% currency impact on full-year sales.