Zara UK profits plummet by 1/3 despite record sales

A record figure in sales was not enough to lift the full-year profits of Zara UK, as it underwent a store refurbishment scheme.

The British division of the Spanish fashion retailer raked in a record £602.7 million in sales for the year to January 31, a 13 per cent increase.

However, the retailer said an 11 per cent spike in costs as a result of Zara’s UK store renovations played a part in the 32.8 per cent drop in full-year pre-tax profits from £58.3 million to £39.2 million.

Zara UK also closed down stores in Gatwick and London’s Oxford Circus and moved its London head office.

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