Zara owner Inditex has reported a notable increase in sales, defying a general downturn in the retail sector as shoppers increasingly sought out warmer clothing options. The company, which also operates brands such as Bershka, Massimo Dutti, and Pull & Bear, stated that its autumn and winter collections have been "well received."
Between August 1 and September 7, Inditex saw its sales climb by 9% compared to the same period last year. This growth occurred despite prevailing economic pressures, including heatwaves and geopolitical instability in the Middle East, which have contributed to a decline in consumer confidence and spending.
While depreciation affected profits, Inditex's robust recent sales performance positions it ahead of competitors like H&M. The company also continues to attract customers who are not persuaded by discount online retailers, such as Shein, which recently launched an initial public offering in Hong Kong.
In its second quarter, from May to July, Inditex generated €11 billion in sales, a strong result considering high energy prices and subdued consumer sentiment linked to the ongoing conflict in Iran. However, the second-quarter gross profit margin was 56.7%, slightly below analyst expectations due to increased costs associated with the conflict.
Overall profits for the first half of the year rose significantly to €3.85 billion. Inditex CEO Óscar García Maceiras attributed this success to "the extraordinary capabilities of our teams."
Inditex announced a final dividend of €0.875 per share, scheduled for payment on November 2, 2026. Under the leadership of Chair Marta Ortega, the company has focused on elevating the Zara brand through upscale flagship stores and collaborations with prominent designers and photographers. Earlier this year, Zara enlisted John Galliano, former creative director of Dior, as a guest designer, with a collection slated for release this month.
The company's value fashion chain, Lefties, has also seen significant expansion. Launched in 1993 as an outlet for surplus Zara stock, Lefties has evolved into a standalone brand. As of July 31, 2026, Lefties operated 223 stores, an increase from 210 the previous year. The brand recently opened its first UK store at Liverpool One on August 27, with additional openings planned for Lakeside shopping centre in Essex and the Metrocentre in Gateshead this autumn.