Zara owner drives up profits as sales bounce back

Zara-owner Inditex today gave fresh evidence of a recovery on Britain's high streets, posting a 14% jump in sales for the three months to the end of April.

Europe's biggest clothing retailer, which also owns the youthful chain Bershka, saw net profits jump 63% to 301 million (£248.4 million) on the back of sales of 2.67 billion in the quarter.

Zara has continued its rapid global expansion, opening 98 outlets in the period.

Inditex benefited from a sales recovery after almost two years of recession and said sales worldwide at constant exchange rates had increased 13% from the start of its financial year in February to June 7.

"It looks to me as though like-for-like sales were up 5% in the first quarter but we don't know the currency impact for sure I think the market will be pleased," said Anne Critchlow, analyst at Société Générale.

Retailers are starting to see improved consumer demand after the two-year economic downturn. Swedish rival H&M beat expectations for first-quarter profit in April.

Inditex said it would start long-awaited internet sales for Zara on September 2 in Germany, Spain, France, Italy, Portugal and Britain.