Morning Note: Market News and an update from Inditex
Market News
Vladimir Putin’s talks with US envoys Steve Witkoff and Jared Kushner were “very useful,” according to the Kremlin, but the two sides have yet to agree on a plan to end Russia’s war. The US is aiming to halt the conflict in a way that protects Ukraine, Marco Rubio said.
US Treasuries were little changed – the 10-year currently yields 4.07%. Gold pushed back above $4,200 an ounce. The 11% crash in the price over six days from a record high in October doesn’t seem to have had an immediate impact on inflows into gold funds. Flows into SPDR gold shares surged to almost $19bn in the year through October, the highest so far of any year in data going back more than two decades.
Brent Crude trades at $62.80 a barrel. The EU reached a deal to phase out all imports of Russian gas by 2027, seeking to finally sever ties between the bloc and its once-primary energy supplier.
US equities were mostly higher last night – S&P 500 (+0.3%); Nasdaq (+0.6%) – though stocks ended off best levels. In Asia this morning, equity markets were mixed: Nikkei 225 (+1.1%); Hang Seng (-1.3%); Shanghai Composite (-0.5%). The Indian central bank intervened after the rupee weakened past 90 to the dollar, people familiar said. The FTSE 100 is currently little changed at 9,699, while Sterling trades at $1.3260 and €1.1385.
Source: Bloomberg
Company News
Inditex has today released results for the first nine months of its financial year that were above market expectations. Trading remains robust and guidance for the full year has been confirmed. The results are seen as a bellwether for the global fast fashion sector and provide an early insight into how successful the key Black Friday sales weekend was for retailers. In response, the shares have been marked up by 7% in early trading.
Inditex is the world’s leading apparel retailer, with annual sales of almost €36bn. Through brands such as Zara, Pull & Bear, and Massimo Dutti, the group has around 5,527 managed and franchised stores and a strong online presence.
The company’s strategy based on fast fashion at attractive prices has met with headwinds on environmental grounds and, in response, the group is transforming towards a fully integrated, digital, and sustainable business model. With a low share of a highly fragmented market, the company sees strong growth opportunities, with sales productivity in its stores increasing. The group is undertaking an ongoing store optimisation plan – so far this year, there were openings in 39 markets and gross new space increased by 5.8%.
In the nine months to 31 October 2025, sales grew by 6.2% in constant currency to €28.2bn, with a ‘satisfactory’ development both in stores and online. Collections have been well received by customers. In the latest quarter, growth accelerated to 8.4% and was above the market forecast.
Gross profit increased by 3.2% to €16.8bn and the gross margin rose by 27 basis points to 59.7%. The group has continued to ‘rigorously’ manage its operating expenses, which grew by 2.4%, below the rate of sales growth. EBIT increased 4.8% to €5.9bn, just above the market forecast.
Due to the strong operating performance, inventory was 4.9% higher at 31 October 2025 than last year. Free cash flow generation remains strong and the group ended the period with net cash of €11.3bn, down 4%. The dividend of 84c was paid on 3 November, 9% above last year.
The company has continued to trade well in the current quarter – between 1 November and 1 December, store and online sales rose by 10.6% year on year and Autumn/Winter collections “well received” by customers.
The growth of annual gross space in the period 2025-2026 is still expected to be around 5%. The group expects space contribution to sales to be positive in this period, accompanied by strong online sales. Gross margin is expected to be stable (+/- 50 basis points).
Source: Bloomberg
