Published 13th Sep 2023, 10:57 BST

The world’s largest fashion business, which also owns the Pull & Bear and Bershka brands, saw pre-tax profits jump by 39 per cent to 3.3 billion euros (£2.85 billion) over the first half of 2023.

It came as the retail firm pursues a policy of focusing on larger stores in premium shopping locations. That change in approach will see it moving into the old House of Fraser store in Meadowhall, as well as the former Topshop store in Trinity Leeds shopping centre next year.

Inditex told shareholders on Wednesday that sales grew by 13.5 per cent over the half year to 16.9 billion euros (14.6 billion), with growth both in stores and online.

File photo dated 29/05/18 of a branch of Zara, as the fashion giant's owner Inditex has revealed a sharp rise in profits on the back of strong sales of its spring-summer product lines. Picture: Yui Mok/PA Wire

It said this included a 13.1 per cent increase in sales at Zara to £12.4 billion euros (£10.7 billion).

Oscar Garcia Maceiras, chief executive officer of Inditex, said: “The 2023 H1 results demonstrate that the talent of our teams continues to consolidate the improvements in the performance of our business model.

“The ongoing commitment to creativity, quality and customer experience, as well as the determined progress in sustainability, drives a strategy that is taking our business to the next level.”

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “Sales growth continues to outpace higher operating costs.

“It’s a testament to the success of the group’s optimisation strategy, which prioritises closing smaller stores to focus on bigger ones in prime locations.

“That tactic’s set to continue, with floor space expected to grow three per cent this year despite a much lower number of open stores.

“It’s bold moves like that which are helping the group to maintain its impressive margins.”

Zara's 'bold moves' praised ahead of Meadowhall and Trinity Leeds shop openings