Boss, grab a cold beer and sit down, because I've got news that'll make you realize how the weather plays us. The Spaniards at Inditex, the Zara folks, dropped the report and scored an 11% increase in the first quarter of 2026, more than anyone expected. Analysts were saying 8%, they pulled out 8.8% adjusted, that's 8.75 billion euros. About 10.17 billion dollars, if you want to compare with the Americans. And why? Because Southern Europe had better weather than the North, where H&M is giving them dirty looks. I think Zara has a knack for catching the wave, but we Romanians are still eyeing the discounts.
Listen to what Manjari Dhar, analyst at RBC, says: Zara is increasing its market share and leaving competitors like Primark staring at the sun. And here's why: they're deep in Southern Europe, where the sun shone brighter, while H&M is stuck in the cold. Their biggest market is Spain, their home turf. And just like that, good weather brought them cold hard cash. I wish I had a business that followed the weather, not like my construction site, which stops at the first rain.
CFO Andres Sanchez bragged that they adapted their supply chain to avoid transport issues despite wars and crises. Profitability went up, gross margin reached 61.2%, up from 60.6% last year, even though raw materials and transport got more expensive. What do you know, they know how to make money even during war, not like us, who complain about every price hike.
Gorka Garcia-Tapia Yturriaga, another big shot there, said this performance is a big deal given the macroeconomic context and geopolitical problems. But he admitted that in the Middle East, sales were problematic. He didn't say exactly how much, but it's clear not everything is perfect for them everywhere. Zara invested in bigger stores on main streets and opened more in the United States, their second market. Their results are an indicator for the entire clothing industry worldwide, so if they're doing well, maybe others will too.
And now, here's what I find interesting: while they're busy with clothes, our meteorologists at Accuweather gave the forecast for Bucharest. The first real heatwave day is on August 12, with 36 degrees, then on August 13 with 35. August is shaping up to be the hottest month, with several heatwaves, especially in the first half, and little rain. In June, temperatures above normal, but with unstable periods and showers, especially mid-month. In July, it'll be hot to very hot, with intense heat episodes and little precipitation, possibly tropical nights towards the end. So, bro, we're gearing up for scorching heat, but until then, we'll still have some rain.
What does the weather have to do with Zara? Well, that's exactly it: weather influences everything, from clothes to what we drink on the terrace. If it were up to me, I'd want a sunny summer to have a barbecue with the boys, but also a few showers to cool things down. At least let it be like in Spain, not like in Berceni, where the asphalt melts and my BMW chugs like a tractor.
So, relax, the heatwave is coming, but until then, let's enjoy the news that Zara is making money and that the weather is giving us a chance. I'm going to call Fane to see if we can have a barbecue this weekend, because if the heat is coming, at least let's prepare with a cold beer.
