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Inditex first quarter profits fall

Profits at Zara parent company Inditex fell despite sales rising in its first quarter of 2014, as the company continues to expand into new markets.

Net income dropped 7.3% to €406m (£328m) during the three months to April 30 from €438m (£354m) in the same period last year, while turnover rose 4.3% to €3.7bn (£3bn).

Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 2.3% from €749m (£605m) to €732m (£591). The UK results were not split out from total sales.

The company did not explicitly address the profit drop, however it noted a number of new store openings and said it had created more than 8,000 new jobs over the past 12 months, 700 of which were in Spain. Inditex also opened a distribution centre in Cabanillas, Guadalajara.

Zara opened stores in 19 different countries during the quarter, including the US and Australia, while Pull & Bear opened stores in 12 markets.

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