Zara-owner Inditex saw shares jump by 6% in Spain to €33.65 after reporting that sales surged 13% in the first quarter.
Revenue in the first three months of the year totalled €7.6bn, while gross profit increased by 14% to €4.6bn, according to a statement.
Underlying earnings increased by 14% to €2.2bn. Due to the strong performance, net cash also grew by 14% to €2.2bn.
Inditex, which also owns Bershka and Pull&Bear, said it “continues to see strong growth opportunities”.
“To take our business model to the next level and extend our differentiation further we are developing several initiatives in all key area for the coming years,” it said.
Commenting on the results, Aarin Chiekrie, an analyst at Hargreaves Lansdown, said: “The group’s optimisation strategy, which prioritises closing smaller stores and focusing on bigger ones in prime locations, is playing its part too.”
However, Chiekrie also noted that Inditex has a relatively high price point, and if inflation remains sticky at current levels, the Spanish group “could see consumers’ demand for the latest fashion take a back seat as the cost-of-living pressures mount”.