$$ABF (-0,9%) ;$ITX (+0,79%) ; $HM B (-0,24%)

1. inditex (Zara): The "beacon" of the sector

Inditex remains the undisputed favorite of investors in January 2026. While ABF struggles with stock levels, Inditex shares reached a new 10-year high of around EUR 57.48 on January 12, 2026.

Growth: In the first weeks of the new financial year (Nov. to Dec. 2025), sales rose by an impressive 10.6% on a currency-adjusted basis.

Margin strength: With a gross margin of almost 60%, Inditex is significantly more profitable than Primark (approx. 10% operating margin).

Logistics advantage: By producing close to the sales markets, Zara can implement trends more quickly and thus avoid the massive discount rounds that hit ABF in January.

2 H&M: Between the stools

The H&M share shows moderate weakness in January 2026, but is not under as much fire as ABF.

Analyst skepticism: Bernstein Research downgraded H&M to "Underperform" on January 6, 2026 (almost at the same time as ABF). The fear: H&M could be hit by the consumer slump in Central Europe in a similar way to Primark.

Support measures: An ongoing share buyback program (until 28 January 2026) has so far prevented a deeper fall in the share price.

Waiting for January 29: Investors are cautious as the company presents its annual report at the end of the month.

3. why ABF (Primark) performed worse

The main difference with Inditex and H&M in January 2026 lies in two factors:

Lack of online leverage: Primark is still almost entirely reliant on bricks-and-mortar retail. If footfall in Europe falls (as observed in Jan '26), ABF will be hit harder than its digitally better positioned competitors.

Conglomerate risk: In contrast to the pure fashion chains, ABF was additionally burdened by the weak US grocery business (edible oils/baking ingredients) - a problem that Zara and H&M do not have.

Source Gemini