Youth Momentum and Digitalization Drive InditexStradivarius and Bershka Lead Inditex’s Youth Appeal with Digitalization as a Growth Engine
By Ion Jauregui – Analyst at ActivTrades
Inditex’s youth-oriented chains — Stradivarius, Bershka, and Pull&Bear — have become the growth engine of the Galician fashion giant in the first half of 2025. Stradivarius leads the way with a 5.7% increase in sales, reaching €1.327 billion. Bershka follows with a 4% rise to €1.438 billion, consolidating its position as the group’s second-largest brand behind Zara. Pull&Bear completes the trio with a 3% gain, generating €1.158 billion in revenue.
Meanwhile, Oysho also posted a strong 5.7% increase, reaching €389 million, thanks to its repositioning towards sportswear and leisure fashion. In contrast, Massimo Dutti showed a decline of 0.9%, down to €895 million, while Zara, including Zara Home and Lefties, grew by just 0.9%, though with a much larger volume, reaching €13.15 billion.
Technological Innovation: Smart Tagging
Beyond the numbers, Inditex continues to advance its technological transformation. The group has rolled out an RFID smart tagging system, allowing each garment to be identified in real time, improving inventory management, and enabling smoother shopping experiences. The system is already fully operational at Zara and is being expanded to Bershka and Pull&Bear, complementing services such as Click & Collect and self-checkout stations.
Stock Market Performance
Despite first-half revenue growing by just 1.6%, markets have reacted positively to signs of improvement in the second half of the year. Inditex shares jumped 6.52% following its results release, and another 2.66% the next day, marking a 9.4% gain in two sessions. This performance put the company at the top of the Ibex 35 and boosted its market capitalization to €145.4 billion, reinforcing its standing as a global fashion leader.
In short, youth-driven growth and digitalization are putting Inditex back on a recovery path that could solidify in the third quarter, even if its overall growth remains more moderate compared to pre-pandemic years.
Technical Analysis – Industria de Diseño Textil SA (Ticker: AT: ITX.ES)
Inditex shares closed yesterday around €46.64, recording a rally of nearly 9.4% in just two sessions, fueled by optimism around its results. The chart reflects a clearly bullish short-term bias and a consolidation phase in the longer term, as the price attempts to break the upper range while holding above key moving averages — a setup not seen since June.
The current support lies near €44.68, with a secondary level at €43.58, which recently acted as resistance and now serves as a pivot point. This level aligns with the 200-day moving average, potentially signaling a turning point from sideways action into a more defined bullish trend. On the upside, investors are eyeing resistance at €48.5 and €49.5, levels that could cap short-term gains.
The RSI indicates overbought conditions, leaving room for short-term pullbacks after the sharp rally, though the technical structure remains solid. In the medium term, a breakout above €49 would pave the way for a test of yearly highs, while a drop below €44 would serve as an early warning of weakness. The MACD also confirms a recent bullish crossover.
According to the ActivTrades Europe Market Pulse, European markets currently show a neutral-mixed stance, reflecting a balanced environment since mid-June, albeit with intermittent risk-on impulses that have yet to trigger any signs of alarm.
Youth Pays the Bills
The momentum of Inditex’s youth-oriented brands, coupled with its digital push, cements the group’s leadership in the sector. At the same time, its stock maintains a bullish tone, supported by solid levels and resistance points near €49, which represent the next challenge for investors.
In essence, Inditex enters the third quarter in a technically favorable context, with markets rewarding both its operational progress and the outlook for sustained upside momentum.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.
IXD1 trade ideas
Trading Idea - #Inditex#Inditex - Conviction BUY (long-term)
ENTRY: 21.00 EUR
TARGET: 29.50 EUR (+40%)
STOP: 17.60 EUR
Inditex is one of the largest textile companies in the world, based in Arteixo / Galicia (Spain). Inditex specializes in the design, manufacture and distribution of clothing and accessories for men, women and children. Zara is the best-known brand of the group, which also includes Pull&Bear and Bershka.
Inditex saw slower sales growth in the final quarter due to new Covid restrictions, but sees rising earnings and a strong business recovery at the start of the new fiscal year. Last year, the Spanish fashion chain with brands such as Zara, Massimo Dutti and Bershka significantly increased sales, net profit almost tripled and margins improved significantly.
From a technical analysis perspective, we are at a support level. All signs indicate a bounce and thus a recovery of the chart.
According to the current valuation, the fair price (if there is such a thing :-) ) of the share is between EUR 29 and 30.
Estimated financial data (EUR)
YEAR 2022
Sales 2022 = 27,931 million
Net income 2022 = 3 646 million
Net liquidity 2022 = 8 446 million
P/E ratio 2022 = 18.0x
Dividend yield 2022 = 4.82
YEAR 2023
Sales 2023 = 28 855 mn
Net income 2023 = 3,626 million
Net liquidity 2023 = 10 468 million
P/E ratio 2023 = 18.1x
Dividend yield 2023 = 5.23
Inditex long term trendMultiyear view of Inditex.
- Distribution (Wyckoff) from 2015 to 2017. Range 29 to 32. Blow off top on 36 euros.
- Second redistribution from 2018 to 2020. Range 24 to 28. Blow off top on 32 euros.
- Potencial third redistribution 2020 to 2022. Range 18 to 24:
Topping on 32 euros in December 2019.
Almost 50% drop on March 2020
A - Support on 18,56 following 2013-2015 trendline
B - Rebound in April 2020 to 26 euros
C - Potencial C wave to 14 euros implying a 56% drop, this would be a shake out on the third redistribution.
Potential catalyst for C Wave is 1-2 months after re-opening of stores across Spain and Europe as only 30% of stores in Spain are re-opening and people may not return to pre-covid consumption habits, this may cause a 30-50% drop in sales
Entry point: 24
Stop loss: 25.5
Take profit 1: 20.64
Take profit 2: 19.7
Take profit 3: 18.47
Take profit: 14.47
ITX playAs you can see last year we repeat the same pattern , break 200ma and run it up to the deathcross.
SAME PATTERN is going on here :) and with a big gap.
So what i think will happen is the next :
Price will run UP and fill this gap , once it fills there will be a rejection and a deathcross , so go Short !!
M0byy
Inditex boosted above EUR 25,40 - Medium termInditex is facing a great bullish momentum:
Fundamental:
After the downgrade of Morgan Stanley -17%, they have reported solid quarterly results reaching USD 12 Bn of revenue for the first time, remaining its clothing leadership.
Technical :
-Spanish equities negative momentum was sending Inditex downwards, however IBEX 35 is back again above 9.200 level pointing out a recovery of the Spanish Index.
-There is a gap at EUR 27-28 that needs to be covered.
-ITX did not break the FIBO 0,61 level.
Enjoy your trading!
ITX-2k18 Summer Season View 3 Months till Mid end August**Hey there!
Here's a possible movement for the next 3 months till mid-end August.
You can find further information about my chart and idea in the chart itself in three separate Black Boxes (so called black wall).
Please note that every chart posted about companies is build on information build and based by many different medias and gazettes.
Part of it is also made of information taken from the chart itself, by checking it's history and movement.
Thank you!
Best regards,
Egzon Shabani
ITX-LONGTERM VIEW 2k18 - BUYHey there!
My idea behind this chart is, the possibility to profit of an long term trade, by buying on the lowest of it's points.
Since the low of the ITX Chart is yet by approx. 26,7-27,9, it may be the best Idea to buy at These Points and sell at About the end of the year, by beginning of the winter Season. ( When Inditex companies Show their first buyable items for the winter Season).
DM me for further Information.
Best Regards,
Egzon Shabani