The Spanish Civil war actually hurt the Italians more than is realized, the Italians sent Franco a lot of military equipment, much of it was never replaced.
Italy's airpower was stuck in mid-30s mindset, and the tanks weren't much better.
Mussolini didn't want to go to war, he only declared because he thought the British would quit when the French did, and he is quoted as saying "I need a few thousand dead to sit at the peace table."