Zara Parent Lifted by Weak Euro

MADRID—Zara store owner Industria de Diseñ o Textil SA said Wednesday that net profit surged 28% in the first quarter, as sales grew in stores on five continents and earnings were further bolstered by a weakening euro.

The Arteixo, northwestern Spain-based retailer said net profit was €521 million ($577.97 million) between Feb. 1 and April. 30, compared with €406 million a year earlier. Inditex's sales grew 17% to €4.37 billion.

Analysts polled by FactSet ahead of the results had expected net profit of €509 million and sales of €4.33 billion.

"We are highly satisfied with the results achieved," said Marcos Ló pez, Inditex's capital markets director. "They reflect a very strong operating performance with positive like-for-like sales growth in all geographies."

For the first time in two years, the world's largest fashion retailer by sales got a boost from a weakening euro compared with other currencies. That helped further propel sales and profit growth.

Inditex said sales in stores and online in constant currencies grew 13.5% between Feb. 1 and June 7, compared with a growth rate of 11% in 2014.

Write to Christopher Bjork at [e-mail]

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