Inditex has lifted half-year sales 7.6 per cent to €19.8 billion, but the Asia and rest of world region that houses its Australian business slipped to 15.0 per cent of group sales from 16.0 per cent a year earlier — the only geography to lose share.
Every region still grew in constant currency terms, with Europe excluding Spain accounting for 51.5 per cent of first-half sales, the Americas 17.9 per cent and Spain 15.6 per cent.
Sales in constant currency climbed 9.2 per cent across the six months to 31 July, while EBITDA rose 7.8 per cent to €5.5 billion and pre-tax profit 6.8 per cent to €3.8 billion.
Inditex chief executive Óscar García Maceiras credited the result to his teams delivering through what he described as a highly complex global environment.
"Ambition, flexibility and innovation are key differentiating factors," he said.
The pressure point sat below the top line. Operating expenses increased 8.3 per cent, running 50 basis points ahead of sales growth once all lease charges were included, with transport costs tied to Middle East disruption doing most of the damage.
Net income still reached a record €3.0 billion and the net cash position grew 4 per cent to €10.4 billion.
That squeeze arrived in Australia first. ASIC filings for Inditex Australia Pty Ltd, the entity behind Zara Australia, show total profit for the year to 31 January 2026 fell 25 per cent to $19.14 million from $25.5 million.
Revenue grew 2.3 per cent to $410.3 million but cost of sales rose 5.3 per cent, leaving gross profit flat at $224.89 million and gross margin down 1.28 percentage points to 54.81 per cent.
Selling and administration costs lifted 4.2 per cent to $191.68 million, pulling operating profit down 19 per cent to $33.2 million.
The local arm nonetheless paid a $34 million dividend, more than triple the previous year's $10 million payout and larger than its net profit for the period.
The payment flowed to Zara Holding B.V. and took retained earnings from $53.7 million to $38.8 million, with total equity falling from $95.6 million to $80.7 million.
The accounts also carry a $5.05 million provision covering a review of award entitlements for store staff between August 2012 and June 2024, after a third-party specialist identified shortfalls.
Lease liabilities eased to $137.5 million from $141.1 million, with $29.7 million in new lease additions recognised during the year. Zara operates 15 stores in Australia, six of them in New South Wales.
Momentum has since picked up globally. Store and online sales rose 9 per cent at constant currency between 1 August and 7 September, and the group closed July with 5,444 stores.
Inditex is guiding to a stable gross margin for 2026 within 50 basis points and around €2.3 billion in ordinary capital expenditure, plus close to €200 million in extraordinary spend on corporate facilities. Soft-tag RFID is now live across the entire store network.