Record margin and 106 fewer stores: other key takeaways from Inditex's first quarter

Madrid – Following the presentation on Wednesday of Inditex's accounts for the first quarter of 2026, we now look beyond the record-breaking sales and profits. This analysis aims to understand exactly how the company has performed at the start of this financial year. The owner of Zara has begun the new fiscal year with a widespread improvement in its main economic indicators.

Firstly, looking at Inditex's sales results for the first quarter of 2026, the company achieved 8.8 billion euros (10.21 billion dollars), a +5.75 percent year-over-year growth. This figure represents the highest sales volume in its history for a first quarter. During the same period, from February 1 to April 30, the cost of goods sold reached 3.4 billion euros. This amount is also a record high for a first quarter for Inditex. However, it grew at a slower rate than sales, increasing by only +3.95 percent compared to the 3,262 million euros in the first quarter of 2025.

As a result of these developments, Inditex reported a gross margin of 5.4 billion euros at the end of the first quarter. This is also the highest ever recorded by the company for the first three months of a fiscal year. It represents a +6.92 percent increase over the 5 billion euros gross margin recorded in the same period last year.

To fully understand how Inditex's operational efficiency has improved, these indicators culminate in a gross sales margin of 61.2 percent. This key metric is an increase of 60 basis points compared to the 60.6 percent gross margin recorded in the first quarter of 2025, setting another record high for Inditex in a first quarter. The company has consistently delivered margins above 60 percent at the start of the year since 2022. However, it has not yet achieved this milestone for a full financial year. The last peak was at the close of the 2025 financial year, which Inditex completed with a gross sales margin of 58.30 percent, after reaching a high of 62.2 percent during the third quarter.

Increased supplier financing

Regarding working capital dynamics, Inditex finished the first quarter of 2026 with an increased inventory level of 3.8 billion euros (+0.55 percent). Simultaneously, the amount owed to the company from specific operations and/or franchisees decreased to 1.06 billion euros (-5.49 percent), while the amount the company owes its creditors, mainly suppliers, rose to 10.8 billion euros (+3.75 percent).

As a result, the company ended the quarter with a negative working capital of -5.9 billion euros. This figure represents a +7.85 percent increase from the -5.5 billion at the end of the first quarter of 2025. It is also +42.75 percent higher than the -4,173 million at the close of the last financial year.

Rounding out the main financial indicators for Inditex in the first quarter of 2026, operating profit (EBITDA) grew to 2.6 billion euros (+7.31 percent), with the EBITDA margin increasing from 28.9 to 29.3 percent. Earnings before interest and tax (EBIT) rose to 1.8 billion euros (+7 percent), with the EBIT margin moving from 19.8 to 20.1 percent.

106 fewer stores

Finally, regarding the evolution of its retail network, Inditex ended the first quarter of the year with a total of 5,456 stores. This figure represents a net closure of 106 stores over the past year, compared to the 5,562 stores it operated at the end of the same period last year. Of this net loss, only four stores were closed during this first quarter of 2026, considering the company ended its 2025 financial year with a total of 5,460 stores.

On a year-over-year basis, all of Inditex's chains have seen a reduction in their number of stores, with the sole exception of Lefties, which expanded its network to 217 stores (+8 stores). This contrasts with the net contractions in the retail networks of Zara, with 1,495 stores (-50 stores); Zara Home, with 376 stores (-12 stores); Pull&Bear, with 792 stores (-12 stores); Massimo Dutti, with 509 stores (-19 stores); Bershka, with 851 stores (-4 stores); Stradivarius, with 837 stores (-1 store); and Oysho, with 379 stores (-16 stores).

In this regard, Inditex notes that during the first quarter, optimisation projects were carried out across the retail networks of its various chains in 44 markets. These projects included refurbishments, relocations, new openings, and absorptions. The company is allocating the majority of the 2.3 billion euros in ordinary investments committed for 2026 to these initiatives, as announced last March during the presentation of the 2025 financial results. With these investments, Inditex aims to increase the productivity of its stores. Following its optimisation strategy, the company estimates a gross space growth of approximately +5 percent for 2026.

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