Spanish fashion giant Inditex today posted a 5% rise in 2014 profit, as an economic recovery fed customer appetite for fashion in its biggest European markets and set it on course for further expansion via bigger stores.
The world's biggest fashion retailer, based just outside La Coruna, said profit rose to €2.5 billion and like-for-like sales rose 5%.
Overall sales rose 8% to €18.12 billion, meeting market expectations.
The Zara-owner, which has lured shoppers this winter with skirts and tunics in leather, said sales in the six weeks to March 14 rose 13% at a constant currency basis.
That compares with a better than expected 15% sales rise at rival Hennes & Mauritz.
Inditex's biggest challenge at present is to keep up with online-only shopping upstarts like Germany's Zalando or Britain's Asos.
With that in mind it is discretely closing smaller branches and concentrating on big flagship stores, such as the 4,400 square metre SoHo site in New York's Manhattan acquired earlier this year.
The company confirmed that strategy, saying it would open up to 480 new shops and close 80 to 100 smaller shops in locations nearby.
The cash-rich retailer also said it would invest around €1.35 billion compared to €1.24 billion in 2014.
