Inditex Shares Slide on Weaker Gross Margin Despite Higher Profit
Inditex reported pre-tax profit of $3.8bn for the six months to 31 July, up 6.8%, with gross margin rising to 58.7%. However, second-quarter gross margin of 56.7% fell short of forecasts as management pointed to higher transport and input costs linked to the Middle East conflict. Sales increased to €19.76bn, up 7.6%, and constant-currency growth was stronger, with autumn-winter collections showing positive response despite extreme temperatures.