Zara owner eyes further expansion

The owner of the Zara and Massimo Dutti fashion chains today said annual profits rose 5% after it opened another 343 stores in the year.

Spain’s Inditex reported net income of €1.31bn and said sales climbed 7% to €11.08bn after new store space offset a flat like-for-like sales performance in the year to January 31.

The same-store figure included a 2% improvement in the second half and Inditex revealed that it had made a strong start to the new financial year after a 14% rise in sales in local currencies.

It plans to expand its store network by between 365 and 425 new shops this year, including its first shops in India from May. Around 40% of the company’s new space will be in Asia during 2010.

The company had 4,607 stores at the end of January including those trading in the UK and Ireland under the brands Zara, Massimo Dutti, Pull and Bear, Bershka and Zara Home.

It plans to launch its Zara online store to coincide with the autumn and winter season, with the site initially available in six European countries.

The company, which employs 92,000 people, said sales at its flagship Zara chain increased by 4% to €7.08bn during the year. It generates around 68% of its business from outside Spain.