EUR 100.00 For Business Accounts Only

IBERIAN DAILY 03 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: INDITEX, INDRA.

Calm returns to the markets
European markets once again rose after Monday’s losses. In the STOXX 600, Banks and Insurance were the sectors rising the most, with Media and Food posting the biggest losses. On the macro side, in the euro zone November’s general inflation rose unexpectedly by +0.1% to 2.2% YoY, with the core figure remaining at 2.4%. October’s unemployment rate was disappointing, remaining at the 6.4% registered in September (raised from 6.3%). In Brazil, October’s industrial output fell unexpectedly. In China, the services PMI from RatingDog fell in November to 52.1 from the previous 52.6. On the geopolitical side, after a five-hour meeting, Russia did not accept the conditions to reach a peace agreement, but it said the talk was “productive”. Separately, the EU agreed to a definitive end to Russian gas imports by 2027 and has pressured for 70% of critical goods to end up being produced in Europe.
What we expect for today
European stock markets would open with gains of around +0.3%. Currently, S&P futures are up +0.18% (the S&P 500 ended up +0.20% vs. the European closing bell). Asian markets are mixed (China’s CSI 300 -0.52%, Japan’s Nikkei +1.27% and Kospi +1.1%).
Today in the euro zone and Spain we will learn November’s final PMI, in the US November’s ADP employment, September’s industrial output and November’s services ISM and final PMI.


COMPANY NEWS

INDITEX. Better 3Q’25 Results in sales (and costs), with a strong start to 4Q’25. OVERWEIGHT
The 3Q’25 sales beat expectations thanks to +8.4% LfL growth (vs. above +7.5% expected and around +9% in the trading update), which means maintaining solid growth in the second half of the quarter (around +8%). Very strong performance in gross margin (+79bps to 62.2% vs. +10bps expected) and the rest of costs, which are well controlled (+3.1% vs. 3Q’24). This means EBIT came in at € 2.37 Bn (+11.2% vs. 3Q’24, vs. +4.1% BS(e) and +4.2% consensus) and the margin rose +137bps to 24.2%. The indications on 4Q’25 sales growth (period from 01 Nov-01 Dec) are very positive, speeding up sharply to +10.6% (vs. around +7% expected), even adjusting for Black Friday (+9% from 01 Nov-24 Nov). The company confirmed its targets’25. We expect a positive reaction.