By Andrea Figueras

Zara parent Inditex is scheduled to report results for its fiscal first quarter on Wednesday. Here is what you need to know.

SALES: For the three months to April 30, the Spanish fashion giant is expected to post sales of 8.39 billion euros ($9.58 billion), compared with 8.15 billion euros in the prior year, according to a poll of estimates by 14 analysts compiled by Visible Alpha.

NET PROFIT: Inditex is expected to book net profit of 1.30 billion euros, up from 1.29 billion in the same quarter last year, according to the same consensus.

Shares have fallen 1% since the start of the year, but are up 7.6% over the past 12 months.

WHAT TO WATCH

-- CURRENT TRADING: The company's recent updates have disappointed investors due to mixed current performance, Jefferies analysts said in a note to clients. In March, Inditex booked weaker-than-expected results for the first few weeks of fiscal 2026, prompting fears that sales could be slowing after exceptional postpandemic levels. Despite this, the group has the ability to react to demand and adjust supply accordingly, the analysts added.

-- WEATHER: So far this year, there has been a slowdown in apparel retail trends in southern Europe, Inditex's heartland, with an improvement in trends in northern Europe, RBC Capital Markets analyst Richard Chamberlain wrote in a note. Iberia has experienced nearly 4 strong years following a tough start to the pandemic, but now faces a more subdued Spring in 2025, he said.

-- CHALLENGING ENVIRONMENT: In an environment marked by uncertainty, partly due to President Trump's tariffs, as well as fierce competition from Chinese players such as Shein, Inditex seems to remain in a competitive position, Jefferies analysts said. The Spanish group should have opportunities for market share expansion after the postpandemic surge, they added.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

June 10, 2025 09:46 ET (13:46 GMT)

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