Inditex posts 11% jump in quarterly sales

Inditex, the global fashion group that owns Zara, posted an 11 per cent increase in quarterly sales but more modest profit growth as its cost of goods rose in a weakening global economy still racked by inflation.

The Spanish group on Wednesday said sales hit €8.2bn in the three months to the end of September while the cost of sourcing its clothing rose slightly faster, increasing 13 per cent from a year ago to €3.2bn. The company said its control of operating expenses was “rigorous”.

Net profit for the quarter was up 6 per cent to €1.3bn at the retailer, whose brands include Massimo Dutti and Bershka.

After announcing in October that it had reached a provisional deal to sell its Russia business, a large operation comprising 502 stores, it said it had taken an additional €14mn charge to cover the cost of the exit following a previous €216mn hit.

The Russia business is being taken over by Daher, a group based in the United Arab Emirates with various retail and real estate investments including shopping malls.