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Industria de Diseno Textil, S.A. ITX

Bolsa de MadridSpecialty retailFinancials to Jul 31, 2026 · Updated Oct 6, 2026

On Stock Analysis · affiliate link
ITX financials
Moat score
91
ROIC
86.3%
P/E
26.2
EV/EBIT
19.0
FCF yield
4.6%
Dividend yield
3.2%
Market cap
€167.6B

Moat ranks

Score rankTied #38 of 396
Durabilitydurable
Market structureCompetitive
Pricing powermoderate

Balance sheet

7/31/26
€BJan 31Jul 31
Cash5.34.4
Securities5.76.0
Debt0.00.0
Net cash11.010.4
Equity20.417.9
Leverage
Debt / EBITDA
0.00×
Debt / equity
0.00×
Leases (7/31/26)
€6.2B
Capital
Diluted shares
3,116M
Book value / share
€5.73
Price / book
9.4×
Net cash / share
€3.34
Market cap
€167.6B
Enterprise value
€157.3B

Per-share record

Fiscal years and TTM
Scale
€0€5€10€15'17'18'19'20'21'22'23'24'2512.79'2613.24TTM
Revenue per shareCash flow per share

Key indicators

Latest: Q2 '27
IndicatorLatestVs year agoLast 8 quarters
Revenue growth9.1%+7.4 pts
Operating margin19.0%-0.2 pts
FCF margin–––
Capex / revenue–––
Inventories€3.8B+9%
Operating working capital−€7.0B-15%
Stores5,444-2%
First-half Zara concept sales€13.8B+5%
Sales at constant currency growth+9%+4 pts

Margins and growth from reported quarters; company KPIs as reported in results releases.

About ITX

Inditex designs and sells apparel, footwear, accessories and home goods through Zara, Zara Home, Lefties and five other concepts. Zara and related formats supplied about 70% of company FY2025 sales.

Revenue mix
Zara / Zara Home / Lefties 70.4%Other Concepts (Pull&Bear, Massimo Dutti, Stradivarius, Oysho) 21.4%Bershka 8.2%
  • Supply Chain Control

    Inditex's integrated, near-market (proximity) sourcing and centralized logistics allow fast reaction to trends and tight inventory control.

  • Distribution Control

    A large, optimized store footprint combined with integrated online operations supports availability, returns, and brand presence in prime locations.

  • Brand Trust

    Zara's scale and recurring customer reception support a meaningful brand preference, but low switching costs and the absence of current comparative market-share evidence limit the score and durability.

  • Negative Working Capital

    Inditex reports materially negative operating working capital at group level, providing supplier-funded financing for the retail model.

Timeline
  1. Sep 9, 2026

    Inditex reported H1 2026 sales of EUR19.755 billion and EBIT of EUR3.843 billion; higher gross margin supported profit, but inventory and expenses grew faster than sales.

  2. Aug 2026

    Bershka opened its first US store in Miami, extending the youth concept into a new market.

  3. Jul 19, 2026

    The EU ban on destroying unsold apparel and footwear began for large companies, increasing the value of accurate stock planning and reuse channels.

  4. Jun 30, 2026

    Inditex completed a three-million-share buyback for employee incentive plans, spending EUR161 million in the first half; the purchases meet share awards rather than reduce capital.

  5. Jan 31, 2021 · Half year · One-off charge −€394M

    COVID-19 created EUR394 million of extraordinary expenses in the second half of company FY2020. This depressed operating profit during lockdown conditions; the report gives one aggregate rather than a split by expense type.

Ownership

59%votes
CEO
Óscar García Maceiras
Since 2021 · 5 yrs
Professional CEOSingle share class
Insider votes59.3%

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Financial record

Fiscal year2017201820192020202120222023202420252026TTMTrendChange 2017–26
Per share (€)
Revenue7.498.148.409.086.558.9010.4611.5512.4012.7913.24+6.1%/yr
Cash flow1.331.271.292.220.972.172.142.782.982.963.35+9.3%/yr
Earnings1.011.081.111.170.361.041.331.731.882.002.06+7.8%/yr
Free cash flow0.870.700.771.850.741.811.692.182.122.092.47+10.3%/yr
Capex0.460.570.520.370.230.360.450.600.860.870.88+7.3%/yr
Dividends0.600.680.750.880.350.700.931.201.541.681.72+12.1%/yr
Book value4.084.344.714.794.665.055.465.996.326.555.73+5.4%/yr
Diluted shares (M)3,1143,1133,1143,1143,1153,1143,1123,1133,1143,1163,116+0.0%/yr
Totals (€B)
Revenue23.325.326.128.320.427.732.635.938.639.941.3+6.1%/yr
Operating income4.04.34.44.81.54.35.56.87.68.08.3+7.9%/yr
Net income3.23.43.43.61.13.24.15.45.96.26.4+7.8%/yr
Free cash flow2.72.22.45.72.35.65.36.86.66.57.7+10.3%/yr
Buybacks0.00.00.00.00.00.10.10.00.00.00.2–
Dividends1.92.12.32.71.12.22.93.74.85.25.3+12.1%/yr
Net cash6.16.46.78.17.69.410.111.411.511.010.4+€4.9B
Margins & returns (%)
Gross margin57.056.356.755.955.857.157.057.857.858.358.4+1.3 pts
Operating margin17.217.016.716.97.415.416.918.919.620.120.0+2.8 pts
Net margin13.513.313.212.95.411.712.715.015.215.615.5+2.1 pts
FCF margin11.68.69.220.311.320.316.118.917.116.418.6+4.8 pts
ROIC47.347.342.754.216.952.361.973.371.966.086.3+18.7 pts
Return on equity24.825.023.524.47.620.624.328.929.830.535.9+5.7 pts
Stock pay % of revenue0.10.10.10.10.00.30.20.20.20.30.3+0.2 pts
Capex % of revenue6.17.06.24.13.54.14.35.26.96.86.7+0.7 pts

Change uses 2017 and 2026 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2017 base. Trend shows the fiscal years.

TTM = four quarters to Jul 31, 2026. Per-share values use diluted weighted shares.ROIC = operating income × (1 − 22.1% tax rate, the company's own over three fiscal years excluding one-offs) ÷ (equity + debt − cash and current securities). Returns show a dash when their base is negative or under 10% of revenue. Free cash flow = operating cash flow − capex. Debt is all borrowings; net cash counts long-term securities and excludes leases.

Moat

Moat scorecard

Moat score91
Strength
Confidence
Structure
Competitive
Durability
durable
Trajectory
stable
Pricing power
moderate
Segments
  • Zara / Zara Home / Lefties70.4%
    4 claims
  • Bershka8.2%
    1 claim
  • Other Concepts (Pull&Bear, Massimo Dutti, Stradivarius, Oysho)21.4%
    1 claim

Moat claims

Applies to
Zara / Zara Home / Lefties
Confidence
Durability
durable
Trajectory
stableas of Oct 6, 2026
Why it holds

Inditex's integrated, near-market (proximity) sourcing and centralized logistics allow fast reaction to trends and tight inventory control.

Why stable

H1 2026 gross margin rose to 58.7%, but inventory grew 9.3% against 7.6% sales growth; responsiveness remains valuable without clear evidence that its lead over rivals has increased.

Indicators
  • Inventories€3.8B+9%
  • Sales at constant currency growth+9%
Risks
  • Supplier capacity constraints
  • Ultra-fast online rivals shortening cycles
  • Trade restrictions or tariff shocks
Sources

Profile change log

  1. Oct 6, 2026 · analyst revision

    The six existing moat claims now have stable trajectories, a financial and competitive debate, management evidence and a shared market profile. Pretax profit shares were removed from the operating-profit field because they measure a different subtotal.

  2. Oct 6, 2026 · business change

    Inditex reported H1 2026 sales of EUR19.755 billion and EBIT of EUR3.843 billion; higher gross margin supported profit, but inventory and expenses grew faster than sales.

  3. Oct 6, 2026 · business change

    Bershka opened its first US store in Miami, extending the youth concept into a new market.

  4. Oct 6, 2026 · business change

    The EU ban on destroying unsold apparel and footwear began for large companies, increasing the value of accurate stock planning and reuse channels.

  5. Oct 6, 2026 · business change

    Inditex completed a three-million-share buyback for employee incentive plans, spending EUR161 million in the first half; the purchases meet share awards rather than reduce capital.

Industry & peers

Peer map

0%10%20%30%40%50%60708090100Moat scoreIndustry medianITX
No peer numbers yet

Peers appear on the map as their numbers are collected.

Global fast-fashion retail

As of Oct 6, 2026
CompetitiveHigh cyclicalityUSD 726B in 2035

Global fast-fashion retail as classified by Grand View Research: apparel, footwear, accessories and its other product category, sold through stores and online. This covers mass-fashion retail rather than wholesale textile production; it does not isolate any Inditex brand or the separate Zara Home business.

  1. Inditex
  2. H&M
  3. Fast Retailing
  4. Mango
  5. Gap
  6. Primark
  7. Next
  8. Boohoo
  9. ASOS
  10. Shein
2026 leaders, no comparable shares · Grand View Research, Fast Fashion Market 2026-2035 (published August 2026; collected 6 October 2026)
StocksMoatGross m.Op. m.
ITX9158.4%20.0%
Industry median146848.6%6.4%
Sector median857455.5%16.9%
All stocks median3987652.9%19.6%

Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.

Drivers & risks

Demand drivers
  • Consumers seek affordable fashion as household budgets tighten; value brands can gain customers even when discretionary clothing demand weakens.
  • Fast collection renewal and local demand feedback increase full-price sales when products match changing tastes.
  • Integrated stores and online inventory improve availability, collection and returns; better use of selling space can support growth with fewer shops.
  • Near-market sourcing and flexible logistics reduce the amount of inventory committed before demand is known.
Risks
  • Fashion mistakes and weather changes leave unsold stock that requires discounts; consumers face little cost to switch brands.
  • Online competitors use rapid product tests and low prices; access to social platforms does not give any one retailer exclusive customer reach.
  • Tariffs, fuel prices and shipping disruption raise delivered product costs. Proximity sourcing helps response speed but does not eliminate those costs.
  • Currency moves affect imported costs and the value of foreign sales; high interest rates also restrain discretionary spending, even for retailers with little debt.
  • Labour and material costs, supply-chain traceability and EU rules on unsold textiles can raise compliance and reuse costs.

Bulls & bears

Key question · as of Oct 6, 2026

Can Inditex keep full-price demand and fast inventory response ahead of rivals while rising operating costs and currency effects absorb part of the benefit?

Arguments

3 forFaded: weakening or settled4 against

What to watch

  1. 1Inventory growth versus sales growth and gross margin
  2. 2Sales at constant currency and sales by concept
  3. 3Operating expenses including leases versus sales and IFRS operating cash flow

Next check: Nine-month results on 2 December 2026: check inventory, gross margin, expenses and the autumn sales update.

Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 6, 2026. Not investment advice.

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Free to reuse, commercially too, with a credit link. See the data license.

Moat Score 91/100 by <a href="https://www.findmymoat.com/stocks/XMAD:ITX">Find My Moat</a> (as of September 2026)

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