Bernstein Forecasts 'Strong' Fiscal Q2 Performance for Inditex

06:58 AM EDT, 09/03/2026 (MT Newswires) -- Bernstein anticipates "strong" fiscal second-quarter performance from Industria de Diseño Textil (ITX.MC), d/b/a Inditex, bolstered by expectations of "good" summer weather and a robust exit rate. "Consensus for Q2 is reasonably at +9.6%, implying a c. -300 [basis point] deceleration for the last two months of the quarter. On the exit rate, the comp is tough at +9% - the main risk is that it would have been helpful for the temperature to drop more in the first few weeks of September to spur on Autumn/Winter buying. At 24x, the stock is towards the upper end of its range and therefore the risk/reward into the quarter is muted," analysts said Thursday. "The Spanish consumer has been generally resilient and although July volumes have been softer in the overall market, Inditex typically outperforms and therefore we would be less concerned about this," the research firm added. Bernstein said momentum from the first quarter's 11.5% exit rate is expected to moderate slightly, with the research firm's second-quarter sales expectation of +9.6% at constant currency reflecting a 290-basis-point drop to 8.6% for the rest of the three-month period. Ahead of the Spanish clothing retailer's earnings report on Sept. 9, Bernstein rates the stock at outperform, with a price target of 60 euros.