Zara-owner Inditex Q1 profit beats forecasts as sale boon continues

Rival H&M has struggled to compete for shoppers impacted by a cost of living crisis.

Net profit came in at €1.2bn for the quarter that ended in April, exceeding analysts' average expectations of €980m in a Refinitiv poll. Photo: Stephen Collins /Collins Photos Dublin

Zara-owner Inditex said sales of its spring-summer collection jumped by 16% over the past month, in a sign the fast fashion retailer can continue its strong run despite higher wage costs and the loss of its Russian business.

The results came as the world's biggest fast fashion company reported a better-than-expected 54% rise in first-quarter profit, as sales kept pace after a strong 2022, when it outperformed other retailers during the cost of living crisis.