Retail

Zara owner Inditex outpaces rivals as store-efficiency drive fuels record profit

Operating profit rose 29 per cent to €5.52 billion in the 12 months through January, the company said Wednesday

Inditex’s investments in new technology are helping it outpace Swedish rival H&M. Picture: Getty

Zara owner Inditex SA reported record earnings and cash as the clothing chain operator reaps the benefits of focusing more on e-commerce and trimming more than 1,000 underperforming stores in the past three years.

Operating profit rose 29 per cent to €5.52 billion in the 12 months through January, the company said Wednesday.

Inditex has been weeding out its weakest stores and now it’s reaping the benefits of a much stronger and more efficient brick-and-mortar ...