Zara posts promising profits amid tax avoidance accusations

Zara‘s parent company Inditex has posted a sales increase of 11 per cent in the first nine months of the year.

The world‘s largest clothing retailer, which is based in Spain, revealed a £13.7 billion revenue for the period and a net profit rise of nine per cent to £1.8 billion.

Inditex now operates 7240 stores in 93 countries and also owns brands Bershka and Massimo Dutti.

“Encouragingly, trading at the start of the fourth quarter has improved further, while new space and online launches are progressing as planned,” analyst at Liberum Tom Gadsby said.

READ MORE: Zara accused of “aggressive” tax avoidance

“Few other major clothing retailers can match the mid-teens percentage sales growth that Inditex has achieved in difficult global markets this year while the company’s clear focus on achieving full price sales underpins high, and stable margins.”

Last week the Green Party accused Inditex of “aggressive tax avoidance” in a report into their operations. The company responded saying the report was “based on mistaken premises that lead to erroneous conclusions.”

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