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Zara owner Inditex profits rise on clothes sales surge

Wednesday, September 21, 2016 - 15:45

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Spain's fashion retail giant Inditex, owner of popular brand Zara, on Wednesday posted an eight per cent rise in first-half profits thanks to a surge in clothes sales around the globe.

[MADRID] Spain's fashion retail giant Inditex, owner of popular brand Zara, on Wednesday posted an eight per cent rise in first-half profits thanks to a surge in clothes sales around the globe.

One of the world's largest fashion retailers said profit for the six months from February to July rose to 1.3 billion euros (S$1.91 billion) from the same time a year earlier.

"All of the group's brands increased their international presence during the period, with 83 new stores in 38 countries," Inditex said in a statement, adding that it ventured into three new markets - Aruba, Paraguay and Nicaragua.

Sales in the first half rose 11 per cent to 10.5 billion euros.

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The results of the company, which operates eight store brands including Zara, upmarket label Massimo Dutti and teen chain Bershka, beat analyst expectations, but only slightly.

All brands posted a rise in sales.

Zara and home decoration brand Zara Home were the clear winners, posting a 13 per cent and 17 per cent rise in sales respectively.

The retail empire was founded in 1975 by the discreet, publicity-shy Amancio Ortega, who has since become the world's second richest man after Bill Gates.

Its main competitor, Sweden's H&M, regularly challenges it for the global number one spot.

AFP

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