Better-than-expected quarterly figures for Zara

Spain’s Inditex, owner of clothing retailer Zara, yesterday reported better-than-expected quarterly profits, as its global fast-fashion business model allowed it to keep pace with local economic and fashion trends.

First quarter profit rose 28% €521m — 3% above forecasts. Consumer confidence in Europe contributed, but so did a weak euro and its own weak performance in the first quarter of 2014.

Its shares fell 1.7% versus a 1.2% gain in the European retail sector; reflecting doubts it could match last year’s 58% gross margin, neck-and-neck with Sweden’s Hennes & Mauritz (H&M) and way beyond most retailers.