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.