Splashing out on new stores hit profit at the group behind fashion chain Zara, it revealed today.
Spanish clothing giant Inditex reported its first quarterly fall in profit since 2010. Its 2013 fourth-quarter net profit slipped to €703 million (£590 million) from €708 million a year earlier.
It opened 331 stores over the past 12 months in 61 markets and spent €1.24 billion, largely on new openings and refurbishments. It now has more than 6,340 shops.
Investors were braced for the news — shares had fallen about 7% in the past month as analysts cut estimates for the group that runs brands including Pull&Bear and Bershka.
Net income ticked up nearly 1% to €2.38 billion, its slowest growth in five years. Sales were up 4.9% to €16.7 billion for 2013. Despite the blip, sales jumped 12% in the first six weeks of this year and today the shares rose nearly 4%.
Inditex has been growing its cheaper chain Lefties to compete with rivals and now has about 100 Lefties stores in Spain and Portugal.
