What happened
Inditex, the parent company of Zara, reported a 7.6% year-on-year increase in revenue for the first half of its fiscal year 2026, reaching €19.8 billion (approximately RMB 154.4 billion).
Net profit grew by 6.8% to €3 billion (about RMB 23.4 billion), while gross margin improved by 0.4 percentage points to 58.7%.
All six of its brands, including Zara (with Zara Home and Lefties) and Massimo Dutti, saw growth, but the company continued to adjust its global store network, reducing the total number of stores by 84 year-on-year to 5,444.
Why it matters
The results show Inditex's ability to grow revenue and profit despite a shrinking physical store footprint, indicating a strategic shift towards larger, more efficient stores and online sales.
The decline in Asia's revenue share to 15.0% highlights a regional shift, with Europe (excluding Spain) and the Americas gaining importance, which could influence future expansion plans.
Key facts
Revenue for H1 fiscal 2026 (six months ending July 31) grew 7.6% year-on-year to €19.8 billion.
Gross margin increased by 0.4 percentage points to 58.7%.
Net profit rose 6.8% to €3 billion.
Total store count decreased by 84 to 5,444, but annual sales area is expected to grow about 5% in 2026.
Asia and the rest of the world accounted for 15.0% of revenue, down from 16.0% a year earlier.
What to watch next
Whether Inditex can maintain its growth momentum in the second half of the fiscal year, especially in light of ongoing store network adjustments.
How the company addresses the declining revenue share in Asia, a region that may offer growth opportunities despite current challenges.
