Bernstein: Investor Focus on Inditex's Near-shoring Capabilities 'Misplaced'

08:48 AM EDT, 07/22/2026 (MT Newswires) -- Bernstein on Wednesday noted that the business advantage of Industria de Diseño Textil (ITX.MC), d/b/a Inditex, over industry peers is not driven by near-shoring but by its use of air freight and its nimble buying strategy and trend responsiveness. "Many investors focus on Inditex's near-shoring capabilities as the most important factor for its success. Perceived wisdom is that Inditex near-shores the majority of its production, which enables a quicker response to trends, to allow lead times of 6-12 weeks vs peers at 6-9 months. However, our analysis finds the situation is more nuanced, with far-shore actually representing >50% of production and not just accounting for cheaper non-trend led basics," analysts said. "We would argue that investor focus on Zara's near-shoring strategy is misplaced. We believe it's not just about the specific factory locations, but it's also about the company's use of air freight and the culture of buying and responding to trends." The research firm added that the Zara owner's business model creates a flywheel effect that enables the retail group's success. "The challenge is that to copy Inditex, you need the culture, the process and the financials. Peers' attempts to copy (e.g. H&M's attempts to near-shore) will likely be futile in isolation." Inditex's outperform-rated stock has a price target of 60 euros.