Zara's sales grew by 9% at the start of the year, leading fast fashion; high dividend payouts boost growth confidence.

Golden Ten Data reported on March 11 that Inditex SA, the parent company of Zara, announced it will increase capital expenditure for 2026, following strong sales growth at the start of the current fiscal year. This highlights the retailer’s remarkable resilience, even as weak consumer sentiment impacts many of its peers. In a statement, the company said that revenue grew by 9% at constant exchange rates during the five weeks ending March 8. This growth rate accelerated compared to the 2025 fiscal year, when sales excluding currency fluctuations increased by 7%. The sales growth offers some relief after a previous period of sluggishness and may ease investor concerns that the world’s largest publicly traded clothing retailer is losing momentum. Additionally, the company announced it will raise its dividend by 4% to 1.75 euros per share. Inditex’s share price hit a record high in February, but has fallen sharply over the past two weeks due to broader market turmoil triggered by the recent Iran war.