Zara owner Inditex ITX.MC, the world's biggest fast-fashion company, reported a good start to its first quarter with currency-adjusted sales up 9% between February 1 and March 8, meeting analysts' expectations and sending its shares up 4% in early trading.

The result is likely to demonstrate to investors that Inditex can sustain solid growth despite fragile demand in its key European and U.S. markets, and households under growing pressure from a surge in oil and gas prices triggered by the conflict in the Middle East.

"This is a solid and reassuring update from Inditex," analysts at JP Morgan said in a note.

Inditex shares were up 4% at 55.66 euros by 0805 GMT. The stock hit a record high of 57.9 euros last month but had fallen back since then.

Expectations had been high ahead of Wednesday, with analysts estimating growth of anywhere between 8% and 12% for the start of the first quarter.

Sales in the November to January quarter, including the key Black Friday and Christmas shopping periods, rose to 11.69 billion euros ($13.60 billion) from 11.2 billion euros a year prior, and for the year as a whole sales grew 7% in currency-adjusted terms.

The pace of Inditex's sales growth has cooled since a post-pandemic boom, but its profitability has improved as it has improved stores and logistics to get new clothes to shoppers faster.

Inditex has been closing smaller, less successful stores and opening new flagships around the world that are more spacious, to make them less crowded and give them more of a premium brand feel. It has also invested 1.8 billion euros in building a second logistics hub in Zaragoza.

With fewer, bigger stores, Inditex said it expects overall store space to increase by 5% in 2026, after a 5.3% increase last year. Globally, the company had 5,460 stores at the end of January, 103 fewer than a year ago.

Helped by price increases over the past three years, Inditex's operating profit margin has grown, with its earnings before interest and taxes (EBIT) margin hitting 20.1% in 2025, up from 19.6% in 2024. Inditex's profitability is much higher than that of its major rival H&M, which had an operating margin of 8.1% in 2025.

($1 = 0.8594 euros)

Inditex sales growth has slowed after a strong post-pandemic run https://www.reuters.com/graphics/INDITEX-RESULTS/znpnmbwgavl/chart.png

Inditex has increased its operating profit margin in recent years https://www.reuters.com/graphics/INDITEX-RESULTS/xmvjykawepr/chart.png

-Reporting by Helen Reid Editing by Tom Hogue, Janane Venkatraman and Tomasz Janowski/Reuters