Zara’s global push as profits bounce

Zara owner Inditex stamped its authority on the global fast fashion market today with another year of strong sales and profit growth.

The world’s largest clothing retailer, which also owns the Massimo Dutti and Pull&Bear brands, said net sales rose 12% to €23.3 billion (£20.3 billion) in the year to January 31, while net profit was 10% higher at €3.2 billion.

Last year it opened stores in New Zealand, Vietnam and Paraguay for the first time and began selling online in Turkey.

It said today it will launch online sales in India as part of a global expansion plan. In the first six weeks of its new year sales rose 13%.

Swedish rival H&M said sales booked in local currencies fell 1% in February, the first monthly drop in four years. It blamed the effect of the leap year.

That’s despite a link-up with high-end fashion brand Kenzo which sparked crowds of shoppers in London.

Across its first quarter, sales rose 8% to 47 billion Swedish crowns (£4.3 billion). H&M shares slid nearly 5% to 234.4 Swedish crowns. Inditex, whose figures also missed some analysts’ forecasts, was down 1.2% at €31.01.