Inditex, the parent company behind Zara and Massimo Dutti, saw sales rise 12% to €10.4 billion (£9.5bn) for the year ended January 31 but net profit was broadly flat at €1.25bn (£1.14bn).
Inditex said that like-for-like sales were also flat over the year.
Inditex said it expected to continue to outperform the industry in 2009 - sales in February were ahead 9%.
The Spanish retail group said it would press on with expansion this year, and that it would capitalise on the opportunities arising from the current difficult environment. It will add around 2.4 million sq ft of space in 2009.
Inditex opened 573 stores in 2008, bringing its total number of shops to 4,264 across 73 countries. It entered five new markets last year - the Ukraine, South Korea, Montenegro, Honduras and Egypt. Some 66% of group sales now come from international markets, up 3.5% on 2007.
The Spanish retail giant also launched a standalone accessories concept called Uterque during the year. It has opened 31 stores under the fascia in Spain, Portugal and Greece. Performance of these stores exceeded company expectations.