Markets speak: Inditex rises and Puig falls after results presentation

Madrid – Puig and Inditex presented their respective balance sheets for the first half of 2025 between the afternoon of Tuesday, September 9 and the morning of Wednesday, September 10. The markets responded to these reports in clearly contrasting ways, reflecting both rejection and confidence from investors in their respective performances and current business plans.

Puig presented its first-half 2025 results, ending June 30, on the afternoon of Tuesday, September 9. The multinational owner of brands such as Carolina Herrera, Rabanne, Jean Paul Gaultier and Nina Ricci, which recently promoted Jose Manuel Albesa to the newly created position of deputy chief executive officer, closed the period with positive results. Sales grew to 2.29 billion euros (up 5.9 percent compared to the same period last year) and net profit reached 280.90 million euros (up 79.13 percent).

In response to these results, Puig's shares, after closing at 15.90 euros on Tuesday, opened Wednesday's trading session falling to 15.11 euros. This initial drop widened throughout the day, with the share price eventually closing at 14.79 euros, a depreciation of 6.98 percent in a single day. The share price is currently attempting to recover but remains below 15 euros, trading at 14.84 euros at the time of writing. This represents a 6.67 percent decrease compared to the pre-results price of 15.90 euros.

Analysing this latest stock market blow to Puig's share price, there is no data in the company's accounts that justifies the market's harsh reaction. This applies to both sales, which were already pre-empted in mid-July, and profits. Despite weaker revenue growth in the second quarter in the company's main division, "Fragrances and Fashion", and in the Americas region, profits soared by 79.13 percent compared to the same period last year, and grew by 31.26 percent compared to the first half of 2023. This suggests that Puig's share price may be affected by the lack of a publicly disclosed medium-term strategic plan. It may also be influenced by the terms of its IPO, with the owning family retaining 71.7 percent of the capital and 92.5 percent of the voting rights.

Markets approve Inditex results

Inditex presented its first-half results for the current fiscal year, ending July 31, before the start of trading on Wednesday. In its most general indicators, the Spanish fashion multinational slightly increased its sales compared to the previous year to 18.35 billion euros (up 1.61 percent). Net profit (not attributable net profit) also saw a slight increase to 2.79 billion euros (up 0.46 percent).

Following this latest update, Inditex shares, after closing at 42.65 euros on Tuesday, opened Wednesday's trading session surging to 45 euros. They closed the day at 45.43 euros, marking a 6.51 percent increase during the session. This share price appreciation continued on Thursday, September 11, with Inditex shares currently trading at 46.38 euros, an 8.74 percent increase compared to the pre-results price of 42.65 euros.

Given the decisive boost to the company's shares, investors and markets appear to have viewed the company's first-half results positively. FashionUnited previously reported on the decline in revenue in key regions, diluting the international weight of its business, as well as the stagnation of Zara's sales and the decline in Massimo Dutti's revenue. The group's management attributed the issues to exchange rate effects. They say that in local currency, the company would have recorded positive growth across all brands and regions. In other words, within each market's borders, Inditex maintained positive sales growth across all brands and geographies, only affected by the conversion of local currency sales into euros. This conversion, which previously inflated Inditex's accounts, is now detracting from them, impacting not only sales but also profits. Investors seem to have approved of the company's performance in what chief executive officer, Óscar García Maceiras, described as "a complex market environment".

This article was translated to English using an AI tool.

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