Inditex Lifted by Home Market Gains

By Christopher Bjork 

LA CORUÑA, Spain-- Zara store owner Industria de Diseño Textil SA said Wednesday that net profit rose 5.2% last year, helped by rebounding sales in its Spanish home market and further expansion in China and other fast-growing economies.

The Arteixo, northwestern Spain-based retailer said net profit was EUR2.5 billion ($2.65 billion) between Feb. 1 and Dec. 31, compared with EUR2.38 billion a year earlier. Inditex's sales grew 8.3% to EUR18.12 billion.

The world's largest fashion retailer by sales has in recent quarters been helped by a rebound in consumption in Spain, where the company derives a fifth of its sales. The addition of 343 new stores on five continents and rising online sales also propelled growth.

Like-for-like sales grew 5% during the last fiscal year, compared with 3% in 2013.

Inditex said sales in the first weeks of the new year had continued the growth trend. Store and online sales in constant currencies grew 13% between Feb. 1 and March 14, compared with a growth rate of 11% in 2014.

The company said it plans to pay a dividend of EUR0.52 a share on 2014 results, up 7.5% from a year earlier.

Write to Christopher Bjork at [e-mail]

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