Executive Summary

• Inditex reported 1H18 revenues of €12.03 billion, up 3.0% year over year and below the consensus estimate of €12.06 billion. Sales grew by 8.0% at constant currency.
• The operating margin contracted marginally, by 10 basis points, due to an increase in SG&A expenses.
• By concept, sales under the Pull&Bear and Oysho brands grew the strongest, by 11.2% and 7.0%, respectively.
• Inditex expects its 2H18 same store sales growth to be in the range 4%–6%.