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Zara owner Inditex's profits beat expectations

AFPAFP 15/06/2016 Philippe Huguen
Zara owner Inditex recently opened stores in Aruba and Nicaragua, extending its reach to 90 markets and 7,085 stores© Provided by AFP Zara owner Inditex recently opened stores in Aruba and Nicaragua, extending its reach to 90 markets and 7,085 stores

Spanish clothes retailer Inditex, owner of the Zara store chain, posted Wednesday a 6.0-percent rise in its first-quarter net profit due to higher sales around the globe.

The world's largest fashion retailer by sales said profit for the quarter ending April 30 rose to 554 million euros ($621 million) from 521 million euros a year earlier.

The company said sales reached 4.9 billion euros, a 12-percent increase on the same period in 2015. Sales were up by 17 percent in constant-currency terms which irons out currency fluctuations.

"Inditex achieved a strong operating performance, with like-for-like sales growth in all geographies," the company said in a statement.

The results exceeded market expectations. Analysts polled by FactSet had expected net profit of 543 million euros.

Sales remained strong in the start of the second quarter, advancing 15 percent in constant currency between May 1 and June 13, the company said in a statement.

Inditex said it opened stores in Aruba and Nicaragua in the first quarter, extending its reach to 90 markets and 7,085 stores.

Founded in 1975 by Amancio Ortega, Inditex operates eight store brands including upmarket label Massimo Dutti and teen chain Bershka.

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