Inditex retains growth outlook as RBC keeps Outperform rating

The Canadian bank RBC reaffirmed its "Outperform" rating on Spanish apparel group Inditex and kept a price target of €63 per share. RBC projects a 9 % year‑on‑year increase in sales at constant currency for the second fiscal quarter and sees the company's structural growth supported by geographic diversification and operational flexibility. The firm noted recent share weakness linked to concerns over a possible sales slowdown and renewed Middle‑East and oil‑price uncertainty, but argued that full‑price sales and inventory management offset those risks. At the current price of €53.74, the target implies roughly a 17 % upside for investors.

RBC also highlighted Inditex's strong first‑quarter results, with sales up 5.8 % (8.8 % at constant currency) to €8.75 billion and net profit rising 5.4 % to €1.375 billion. The analyst expects the group's gross margin to stay around 61.2 % for the full year, within a range of ±50 basis points.