Inditex has entered the second quarter with momentum and strong execution, and that should have continued throughout the quarter, making it comfortably the most consistent outperformer of the sector over this period, analysts at UBS say in a note. The Spanish fashion retailer's business model inspires confidence, and there is further upside in the shares to be expected, according to the analysts. In this context, the second quarter should again show that the company stands out among peers, the analysts say. Its differentiated sourcing model and focus on full-price sales should ensure stable gross margins, they add.

Eoin Treacy's view

The retail apocalypse entered a new stage during the pandemic because stores had to close and move online. With reopening, many stores have become order fulfilment stations, return locations while also selling new lines of merchandise. That’s a heady mix and difficult to get right. There are some clear winners and losers.

Inditex has broken out of a seven-year range and is now hitting new all-time highs. Zara and the groups other brands are among the winners.

Walgreens Boots is a not. The share is accelerating lower amid falling footfall and the growing trend of shoplifting in city centre locations.
TJX is a clear winner but is somewhat overextended in the short term.
Target remains in a consistent downtrend and has not yet plotted a route out of the culture wars.

Costco broke out of a triangular trading pattern in June and is now firming from the region of the 200-day MA.
Marks & Spencer has held a consistent sequence of higher reaction lows for a year. It is now approaching the upper side of its base formation.