Fashion retail group Inditex, owner of Zara, has today reported a rise in net profit of 22 per cent to â‚¬2.3 billion (£2 billion) in its full financial year as it continues overseas expansion.
Over the course of 2012, the group invested â‚¬1.4 billion, primarily in logistics, and created 10,802 jobs across its network.
Store sales in local currencies jumped 12 per cent in the five weeks ended March 11th 2013 following the opening of 482 stores over the course of the year, the bulk of which marked the retailer‘s entry to new markets.
Opening stores in Armenia, Ecuador and Georgia for the first time, the group entered a total of 64 new markets while also extending its digital portfolio.
Inditex launched online stores in 23 markets last year including a Zara website in China, with another set to follow in Canada later in the year while a site in the Russian Federation is also planned for Autumn/Winter 2013.
Zara continues to be the leading success story for the international group, according to restructuring firm Zolfo Cooper‘s Director Dan Coen.
“Zara has rightfully earned its position as the king of international retail,” he said.
“Parent company Inditex is going from strength to strength; today it posted a 22 per cent rise in 2012 profit, shining a ray of light on an otherwise gloomy high street.
“The retailer has continued to perform well in the face of subdued consumer spending in Europe by expanding into Asian markets and has consistently outperformed rivals in the midst of the financial crisis.
“Flagship brand Zara continues to fly the flag for fashion retailers and, by quickly adapting to the latest consumer trends, proves the need for speed in this competitive market.”