Inditex reported its highest-ever first-half profit, despite closing dozens of stores worldwide. Still, shares dropped after results missed market expectations, showing the gap between strong operations and investor demands.
Inditex reported a record €2.98 billion profit for the first half of 2026, but the news didn’t land well with investors. Shares in the world’s largest fashion retailer fell 3.6% within hours of the announcement. The company is earning more than ever, but the results didn’t meet the market’s high expectations. Reuters pointed to higher operating costs, especially increased transportation expenses tied to Middle East tensions, as a key reason for the selloff.
Most companies would welcome a 6.8% rise in net profit and a 7.6% increase in sales. For Inditex, though, the share price dropped to €54.48 after the September 9 results. At one point, the decline topped 4%. The market seemed unimpressed by the underlying numbers, not just the headline growth. According to the company’s press release, Inditex reached a record half-year revenue of €19.76 billion, with gross profit up 8.3% to €11.6 billion.
"Inditex reported that like-for-like sales from August 1 to September 7, 2026, grew by approximately 9% compared to the previous year."
Inditex Interim Half Year 2026 Results
Behind the numbers, Inditex has been quietly reducing its store count. By the end of July, the company operated 5,444 stores worldwide, down from 5,528 a year earlier. Zara alone closed 47 locations, now at 1,487 stores. Only Lefties expanded, adding 13 new outlets. This isn’t a sudden wave of closures, but part of a longer-term effort to consolidate, relocate, and upgrade stores, focusing on larger and more profitable spaces. Sur in English described this as Inditex’s ongoing network optimization—prioritizing bigger, more efficient locations over simply adding more stores.
Even with fewer shops, Inditex’s revenue climbed to €19.76 billion for the half-year, with currency-adjusted growth at 9.2%. The company credits both its revamped physical stores and strong online sales. Zara, Zara Home, and Lefties together brought in €13.78 billion, up from €13.15 billion a year earlier. The company said spring-summer collections were "very well received by customers," and both in-store and digital channels performed well.
Still, the numbers didn’t satisfy everyone. Analysts quoted by Cinco Días pointed to a lower-than-expected operating result and rising costs as reasons for the market’s cool response. EBITDA rose 7.8% to €5.51 billion, and EBIT was up 7.6% to €3.84 billion, but these figures fell short of the most optimistic forecasts. The gross margin improved slightly to 58.7% of sales, but that wasn’t enough for investors looking for bigger gains. Investing.com noted that operating expenses rose 8.3%, outpacing revenue growth and adding to investor disappointment.
"The reduction in store numbers does not signal a retreat from global markets: Inditex continues to optimize its network by focusing on larger, more efficient stores, a strategy highlighted in both company statements and industry analysis."
Sur in English
Inditex isn’t pausing its investments. The company said sales from August 1 to September 7 grew 9% year-on-year at constant exchange rates, helped by strong demand for autumn and winter collections. For the full year, management plans to invest €2.3 billion in regular capital spending, plus another €200 million to modernize corporate facilities. A dividend of €0.875 per share is set for November 2, rewarding shareholders for last year’s results.
Inditex’s approach is clear: fewer but larger and better stores, a strong online push, and a focus on profitability over simply expanding. The group’s 2025 results already showed a 15.6% profit margin on sales, with €6.22 billion in net income from €39.86 billion in revenue. The current strategy suggests Inditex is betting on quality over quantity, even if that means facing short-term market disappointment.
Inditex is deliberately trimming its network, investing in flagship locations, and doubling down on digital. The market’s reaction to a record profit highlights the gap between financial headlines and investor expectations. For now, Inditex is showing that fewer stores can mean higher profits—if the company sticks to its plan and tunes out the noise.
