Deutsche Bank Forecasts No 'Material Change' in Inditex's Fiscal Q2 Constant-currency Growth

06:26 AM EDT, 09/07/2026 (MT Newswires) -- Deutsche Bank Research sees no "material change" in the fiscal second quarter for Industria de Diseño Textil (ITX.MC), d/b/a Inditex, forecasting constant-currency growth to remain within the high-single-digit range despite weather and "tougher" comparative pressures. In a Sept. 4 note focused on the European retail and luxury segments, the research firm said it expects the Spanish clothing retailer's group sales to rise 7.2% year over year to 19.67 billion euros, a 9.1% gain at constant currency and slightly below the consensus estimate of 19.71 billion euros. Meanwhile, early fiscal third-quarter trading is expected to grow by 9%, broadly aligned with second-quarter growth. "The Inditex results and conference call are unlikely to reveal much incremental news, in our view, beyond the headline numbers. Given the EUR180bn market cap, the disclosure is limited with the management relying on the long-term delivery of robust sales growth and margin expansion to reassure investors that the business model remains on track for future success. With all of the headlines on Lefties, we hope there may be more disclosure on this business, especially with regards to the risk of margin dilution but this is unlikely given the relatively early stage in the [roll-out] story. One area which may be interesting is on the operating cost evolution and how much benefit the group is seeing from its new warehouses and in-store operating efficiencies," the note said. "Inditex remains a top pick in European Retail but it is very well owned and there has been limited EPS momentum (FY27e EPS was EUR2.18 in January and EUR2.20 now) but against the backdrop of a tough European consumer backdrop, this is a good performance," analysts added. Ahead of fiscal first-half results due on Thursday, Deutsche Bank rates the stock at buy, with a price target of 60 euros.