Zara UK has returned to profit for the first time since 2007.
The UK arm of Zara, which is owned by Spanish fashion giant Inditex, made a pre-tax profit of £618,692 in its full year to January 31 according to accounts filed at Companies House. This was compared to a £20m loss for the same period last year.
Sales grew 13% for the year to £310.6m, helped in part by new store openings. In the accounts, it said that trade had improved since the summer of 2009.
It said that the main focus for the last year had been to improve profitability by gaining traction in sales growth “for the current portfolio, while keeping operating expenses under tight control”.
Zara UK’s financial year had started on a negative note, the results said, with the recession and poor consumer confidence leading to a drop off in shoppers.
Zara UK said that despite an improvement in trade, the economic situation remained “difficult” and the company expected trade to remain volatile throughout the year.
Inditex has 65 Zara stores in the UK and will launch its first transactional website in the UK next month.