Zara owner Inditex buoyed by return to the high street

Zara owner Inditex posted a jump in profits as customers returned to shops despite rising living costs.

Operating profit at the world’s largest fashion group rose 29pc to €5.5bn (£4.8bn) in the 12 months to January. Sales also increased by 17.5pc to €32.6bn last year, amid 23pc growth from shoppers at its high street stores.

The business benefited from rebounding high street sales following the pandemic, online sales and cost-cutting measures, including plans to close 1,000 Zara stores.

The Spanish clothing giant lifted net cash to a record €10bn, which is earmarked to fund US expansion plans.

This year, store and online sales rose by 13.5pc between Feb 1 and March 13, compared with 12 months earlier.