Zara owner Inditex reported growth in quarterly sales and profits in line with market expectations, boasting that its Spring/Summer collections have been "very well received" by the shopping public.
The Spanish-owned group, the world’s largest listed fashion retailer with brands that also include Massimi Dutti and Pull&Bear, posted revenue of €8.2 billion for the three months to April 30, swelling 7.1% on last year. At constant currency rates, sales grew 10.6%.
Operating income increased 10.3% to €1.6 billion, with profit before tax up 11.1% to €1.7 billion.
Cash from operations "increased markedly", it said, due to the improved operating performance.
A dividend of €1.54 per share is to be declared, the first payments of €0.77 per share was made last month and the final dividend payment will be made on 4 November.
"Inditex continues to see strong growth opportunities," the company said. "To take our business model to the next level and extend our differentiation further we are developing several initiatives in all key areas for the coming years.
"The creativity of our teams and the flexibility of the business model in conjunction with in-season proximity sourcing allows a swift reaction to customer demand. This places us in a unique market position which provides our business model with great growth potential going forward."
It expects to grow gross store space by 5% between 2024 and 2026, with the contribution to sales expected to be positive in this period, in conjunction with a "strong evolution" of online sales.
To grab future growth opportunities, Inditex is implementing an "extraordinary two-year investment programme", allocating €900 million per year to increase logistics capacities in each of the 2024 and 2025 financial years.