Inditex net income rises most in two years on Zara expansion

Inditex SA, the world’s largest clothing retailer, reported the fastest profit growth in more than two years as the Zara owner opened more stores and benefited from the weak euro. Net income rose 28 percent to 521 million euros (USD589 million) in the first quarter, which ran through April, Inditex said yesterday in a statement. The company signaled that revenue growth has accelerated slightly so far in the second quarter. Inditex has opened more than 400 stores annually on average over the past five years. Sales in Spain, Inditex’s largest market, continue to rise after a 5 percent increase in the past financial year, Chief Executive Officer Pablo Isla said. The 3.1 percent growth that the International Monetary Fund forecasts for the Spanish economy is set to bolster sales.“What is really pleasing is current trading,” Anne Critchlow, an analyst at Societe Generale in London, said by phone. Revenue rose to 4.37 billion euros, exceeding the consensus for 4.33 billion euros, gaining 13 percent excluding currency shifts. On that basis, sales rose 13.5 percent in the Feb. 1 to June 7 period. Inditex has more than 500 stores in China and 450 in Russia. The company operates in 88 countries. Rodrigo Orihuela, Bloomberg