Zara group upbeat despite flat figures

The Spanish group predicted an improved performance at flagship brand Zara, which is completing a revamp of top stores. Zara has branches in Hull, York, Sheffield and Leeds.

The group also expects to benefit from recovery in its home base Spain, which has gone through two recessions in six years, and the further roll-out of its fast-growing online business.

Inditex, controlled by the world’s third wealthiest man, Amancio Ortega, has enjoyed years of rapid growth thanks to its fast-changing fashions and expansion into emerging markets.

But its stock has slipped back this year due to concerns of an economic slowdown in developing countries and fewer new store openings as the group focused on revamping flagship outlets.

Inditex, with 6,340 stores in 87 countries, said sales in local currencies jumped 12 per cent from February 1 to March 15, after climbing eight per cent to 16.7bn euros in the 12 months to January 31. Core annual profit was flat at 3.9bn euros.