Japan x European Retail: Inditex vs. Fast Retailing - The Devil Wears Uniqlo and Zara

Research evidence excerpt

Japan x European Retail: Inditex vs. Fast Retailing - The Devil Wears Uniqlo and Zara

31 July 2026

Global Retail

Japan x European Retail: Inditex vs. Fast Retailing - The Devil

Wears Uniqlo and Zara

Inditex and Fast Retailing (UNIQLO) are widely considered the champions of global apparel William Woods

+44 20 7676 6806 retail, delivering 14-19% compound annual TSR over the last 20 years. In this note, we

william.woods@bernsteinsg.com compare and contrast the two businesses.

Yugo Shima Inditex and Fast Retailing have much in common. Both businesses have outperformed

+81 3 6777 6994 their respective indices over the last 20 years (c. 7-12pts outperformance). Both

yugo.shima@bernsteinsg.com

have delivered above sector average growth at leading margins and ROIC. Both have

compounded at LDD constant currency growth over the last 15 years as they have grown Richard Trainor

+44 20 7762 1050 from their home bases (Spain & Japan). Both are seen as quality fashion retailers. Both have

richard.trainor@bernsteinsg.com seen multiples ebb and flow but FAST has traded at c. 35x NTM PE since 2013 whilst ITX

trades around 20-25x NTM PE.

Ran Yang

+852 2123 2658

ran.yang@bernsteinsg.com However, they are solving for different problems. Inditex (Zara) aims to copy fashion

trends with high SKU churn whilst FAST focuses on more consistent, affordable product

Alice Buckley with lower SKU churn and high sales per SKU. Both deliver operational excellence and

+44 20 7676 6739 leading margins. Inditex delivers a higher gross margin (58% vs. 54%), EBIT margin (20%

alice.buckley@bernsteinsg.com

vs. 17%) and ROIC (50% vs. 42%).

Rhea Gudiwala Inditex & FAST are solving for different product, price and category problems: +44 20 7676 7293

rhea.gudiwala@bernsteinsg.com

Inditex is a fashion chameleon.