Inditex benefits from store openings

Spain's Inditex reported net income of 1.31 billion euros (1.19bn) and said sales climbed 7 per cent to 11.08 billion euros (10bn) 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 per cent improvement in the second half and Inditex revealed that it had made a strong start to the new financial year after a 14 per cent 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 per cent of the company's new space will be in Asia during 2010.

The company had 4,607 stores at the end of January, with 91 outlets in the UK 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 including the UK.

The company, which employs 92,000 people, said sales at its flagship Zara chain increased by 4 per cent to 7.08 billion euros (6.4bn) during the year.

It generates around 68 per cent of its business from outside Spain.