{"id":91510,"date":"2026-07-27T20:54:19","date_gmt":"2026-07-27T20:54:19","guid":{"rendered":"https:\/\/www.europesays.com\/britain\/91510\/"},"modified":"2026-07-27T20:54:19","modified_gmt":"2026-07-27T20:54:19","slug":"inditex-well-dressed-for-rising-costs-says-barclays-as-it-upgrades","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/britain\/91510\/","title":{"rendered":"Inditex well dressed for rising costs, says Barclays as it upgrades"},"content":{"rendered":"

\"Inditex<\/a> Inditex well dressed for rising costs, says Barclays as it upgrades Proactive uses images sourced from Shutterstock <\/p>\n

Zara owner Inditex offers an attractive way to weather rising clothing costs while retaining scope for stronger sales and margins, according to Barclays. <\/p>\n

The bank upgraded the owner of brands including\u00a0Massimo Dutti, Pull & Bear and\u00a0Bershka\u00a0to ‘overweight’ and set a \u20ac62.5 price target after its relatively muted share-price performance, which has seen a total shareholder return of -2% delivered this year, compared with stronger gains for retailers including Marks & Spencer and B&M. <\/p>\n

Barclays expects a mid-teens total return over the next 12 months, comprising 11% earnings growth and a dividend yield of about 4%. <\/p>\n

The Spanish retailer’s tight inventory control and ability to raise prices should help protect profitability as raw-material costs increase into 2027. <\/p>\n

Barclays also believes earnings could beat consensus forecasts by around 2% between the 2026 and 2028 financial years. <\/p>\n

Annual sales growth is forecast at about 7%, supported by comparable sales gains of 4.5%-5% and additional store space. Zara is expected to grow by about 6% annually, helped by expansion in the US and further movement upmarket. <\/p>\n

Smaller brands Stradivarius and Bershka are forecast to grow at low double-digit rates, while budget chain Lefties should expand even faster from a relatively small base. <\/p>\n

Inditex’s second-quarter results are due on 9 September. Barclays believes current sales growth of at least 7% would be enough to support a re-rating, although hot weather, weaker household spending and fading currency benefits present near-term risks. <\/p>\n","protected":false},"excerpt":{"rendered":"Inditex well dressed for rising costs, says Barclays as it upgrades Proactive uses images sourced from Shutterstock Zara…\n","protected":false},"author":2,"featured_media":91511,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[21264],"tags":[3343,39115,39116,20796],"class_list":["post-91510","post","type-post","status-publish","format-standard","has-post-thumbnail","category-barclays","tag-barclays","tag-inditex","tag-massimo-dutti","tag-total-shareholder-return"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/116993934470736255","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/91510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=91510"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/91510\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/91511"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=91510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=91510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=91510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}