Asia has significantly contributed to a 12 per cent boost in Inditex’s profit.

Inditex, the owner of Spanish brand Zara, posted a strong performance on the back of growing sales in Asia and online. 

Inditex’s profit rose to 1.93 billion euros (US$2.56 billion) in the year to January 31.

“Fashion is becoming more and more global and in our view Inditex’s international expansion is still in its infancy,” Filipe Rosa, an analyst at Espirito Santo Investment Bank in Lisbon.

Based in Arteixo, northern Spain, Inditex, whose network spans 82 countries in five continents, opened 483 stores last year under brands including Zara, Pull & Bear, Massimo Dutti and Bershka, bringing its total store count to 5527. China accounted for about one-third of those, or 132 stores.  

Poland, where it opened 50 stores and Russia, where it opened 49, also contributed to the strong growth.

“Inditex’s 2011 earnings were really strong and sales performance at the beginning of this year is pretty good too,” Jose Rito, an analyst at Banco BPI in Porto, Portugal. “My biggest concerns looking into 2012 are cash, which was worse than expected last year, and the (economic) situation in Europe, where it still gets 70 per cent of its sales.”

This year, Inditex plans to invest 950 million euros (US$1.25 billion) to open 480 to 520 new stores. One of the most looked forward to will be the launch of first Massimo Dutti store in the US this year.

Meanwhile, Inditex will launch its e-commerce in China ahead the autumn-winter season. Inditex online stores are also available in 18 European markets, the US and Japan.

GB