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The world’s largest clothes retailer – Inditex, owner of Zara and Massimo Dutti – posted a 7.3-per-cent drop in net profit, its sharpest first quarter drop in five years, the company reported on Wednesday.
Net profit during the three months to April dropped to €406 million ($553 million), compared to the same period in 2013, with the company citing currency fluctuations and global expansion as reasons for the contraction.
Sales, meanwhile, rose 4 per cent to €3.75 billion over the same period, the company said.
Inditex, which owns brands including Massimo Dutti, Bershka and Pull&Bear, opened an additional 53 stores in the first quarter of 2014, taking its total number of stores to nearly 6,400.
It is launching online sales in South Korea and Mexico in September, in addition to the 25 markets where it already has an e-commerce presence.
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