{
  "id": 6401888,
  "title": "Zara owner Inditex reports profit miss despite strong August sales",
  "url": "https://urgent.news/2026/09/09/zara-owner-inditex-reports-profit-miss-despite-strong-august-sales",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-09T09:30:29.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/stock-market-news/zara-owner-inditex-reports-strong-august-trading-amid-heatwaves-4892713"
  },
  "original_language": "en",
  "account": "Zara's owner, Inditex, announced on Wednesday a second-quarter profit that fell short of forecasts, with costs rising due to the Middle East conflict. Despite this, the company's shares declined by 3% during a strong start to autumn trading. Inditex reported a 9% increase in currency-adjusted sales in August, suggesting that extreme heat in Europe did not discourage shoppers. The Spanish fashion giant made €11 billion ($12.8 billion) in sales during the May to July quarter, a solid performance despite high energy prices and consumer sentiment concerns. However, the gross profit margin in the second quarter was 56.7%, slightly below analysts' expectations, as transportation and input costs increased due to the conflict in the Middle East. Inditex CFO Andres Sanchez Iglesias informed analysts on a call that the war is having a negative impact on the company's sales in the Middle East, though this situation improved since the first quarter. Inditex operates around 480 stores in the region, run by franchisees. The company's shares recently reached a record high of €59.1, pushing its market value above that of luxury group Hermes. Hong Kong IPO filings for the affordable fashion platform Shein indicated a sales slowdown, implying that fierce competition in the European fast-fashion sector may be easing. The Spanish conglomerate is expanding its budget brand Lefties into Britain and plans to launch it in Germany next year, targeting lower-income shoppers who have been deterred by Zara's upward shift in pricing. Inditex's portfolio includes Zara, Zara Home, Massimo Dutti, Bershka, Stradivarius, Pull & Bear, and Oysho. The company highlighted that Bershka, Stradivarius, and Pull & Bear generated over €1 billion in sales during the half-year period, with these smaller, younger brands growing at a faster pace than Zara. Despite the scorching temperatures in its key markets, Inditex reported robust sales for its autumn/winter collections from August 1 to September 7, up 9% year-over-year. Analyst Anne Critchlow of Berenberg noted that current trading conditions look positive, despite a tough comparison with the previous year, hot weather, and a U.S. consumer slowdown reported by competitors. Retailers globally are modifying their sourcing schedules as the extreme heat persists into the back-to-school season. Western Europe experienced its hottest June and July on record due to climate change. Inditex also disclosed an extra €200 million in capital expenditures to renovate its corporate offices, in addition to the already allocated €2.3 billion for store revamps and logistics improvements this year. RBC analysts estimate Inditex's annual capital expenditure to be around three times that of its Swedish competitor H&M. As Inditex shifts towards bigger flagship stores and closes peripheral locations, its total store count has significantly decreased since before the COVID-19 pandemic, standing at 5,444 as of July 2021.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}