RBC: Inditex to See 'Strong' Fiscal H1 Full Price Sales; Estimates Adjusted

06:58 AM EDT, 07/20/2026 (MT Newswires) -- RBC Capital Markets expects Industria de Diseño Textil (ITX.MC), d/b/a Inditex, to see "strong" full price sales during its fiscal first half, supported by more robust trading the Spanish fashion retailing sector in the early part of the 2026 season. "The Inditex share price has come in again recently, we think due to concerns about more subdued sales trends, and renewed Middle East/oil price uncertainty. However Inditex's diversity and operational flexibility should mean that it can continue its structural growth in fragmented fashion retail markets, so we view this as a buying opportunity," analysts said in a European Retailing report published Monday. "A depreciation in the EUR vs the USD and other currencies recently is helpful for top line (for this year we model a -0.6pp negative translation impact vs -1pp previously) but it should be a small gross margin headwind into next year. For Inditex we have broadly maintained our EPS forecasts and nudged up our medium term capex estimates due to new planned HQs for non-Zara banners." The research firm forecasts the Zara owner will report a year-over-year increase in fiscal first-half net sales and net income of 19.68 billion euros and 3.06 billion euros, respectively. For the full fiscal year ending Jan. 31, 2027, net income and EPS estimates were upwardly adjusted. The outperform-rated stock has an unchanged price target of 63 euros. Inditex is scheduled to release its interim half-year results on Sept. 9.