Zara sales boom defying retail inflation gloom

Zara has benefited from successfully passing on higher prices to shoppers despite a cost of living crisis squeezing margins at other retailers. 

Fashion giant Zara's owner Inditex reported an 80% jump in quarterly profit on the back of soaring sales as consumers revamped their wardrobes after months spent stuck at home during the pandemic lockdowns.

The company said on Wednesday it made a net profit of €760m euros ($812m) for the quarter to end April, in line with analysts' expectations. Sales rose 36% to €6.7bn, surpassing pre-pandemic levels, while its gross margin hit a 10-year high. Inditex shares rose as much as 5% in morning trade.