Inditex reported 5% constant-currency sales growth in the first half of 2025, with EBIT margin slightly declining. Recent sales growth of 9% between Aug. 1 and Sept. 8 led to a 6% jump in shares. Concerns about slower growth were offset by the recent pickup in sales.

Margins remained steady in the first half, with EBIT margin decreasing by 10 basis points due to rising lease expenses. Accelerated sales growth in the second half is expected to support margins. Inventory increased by 3.0% compared to 1.6% sales growth, indicating strong full-price sales.

The fair value estimate for Inditex is EUR 38.40, reflecting anticipated sales acceleration in the second half. Inditex is seen as a winner in the apparel industry due to its scale and adaptability. Double-digit post-pandemic sales growth is not expected to return, with stable margins reinvested in customer offerings.

Read more at Morningstar: Decent Sales Growth and Some Margin Pressure