Inditex, the owner of fashion brand Zara, reported a rise in profitability on Wednesday as greater efficiency online helped to offset negative currency effects.
The world's largest clothing retailer by sales reported sales up 2 per cent to €5.7bn in the first three months of the year and gross margin up from 58.2 per cent to 58.9 per cent.
The improved margins will help to alleviate concerns about slipping profitability after the margin over the last full year came in at the lowest level in a decade.
Pablo Isla, the group chief executive, said that the results showed “the strength of the integrated store and online model, bolstered by continued innovation, is driving solid growth and notable job creation”.
Improving online efficiency was partly offset by currency effects. The company generates more than half of its sales in non-euro currencies and has so has been suffering from the impact of a stronger euro.
First-quarter earnings before interest, tax, depreciation and amortisation were €1.1bn, in line with analysts' expectations.
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