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Zara-owner Inditex's profit rises as sales grow 6%

Spanish fashion retailer Inditex, which owns Zara, Massimo Dutti and Bershka, reported a 1% rise in net profits to €951m (£797m) as sales soared by 6% to €7.6bn (£6.3bn) for the first half of the year.

Net sales in local currencies from February 1 to July 31 increased 8%. Like-for-like sales grew 2% on top of the 7% increase last year. Taxes were lower at €264m (£221m) compared to €320m (£268m) in 2012.

EBITDA and EBIT were flat with last year at €1.6bn (£1.3bn) and €1.2bn (£1bn) respectively.

Inditex opened 95 stores in 40 markets during the period and operated 6,104 stores in 86 markets at the end of the first half. The fashion retailer said space growth and store openings for the year are on track having refurbished and enlarged some of its key flagship stores around the world including the revamp of London’s Brompton Road store.

Inditex has also recently launched ecommerce for Zara in the Russian Federation.

New store openings slated for 2013 include the Massimo Dutti development planned for Rue de la Paix in Paris and the debut Zara stores earmarked for the cities of Seattle in the US and Port Elisabeth in South Africa.

In the last year the group created 10,111 new jobs, bringing the number of employed by the company to 122,579.

Regarding the second half of the year, Inditex said store sales in local currencies have increased 10% from August 1 to September 14.

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