Zara owner beats high street slump

Inditex's investment in online and mobile resources has paid dividends...

Zara owner beats high street slump

Zara, Facebook

Zara owner Inditex has enjoyed a profit boost, during a period when many of its high street rivals have struggled.

The company - which operates eight brands including Bershka, Massimo Dutti, and Pull&Bear - gained net earnings of €1.26bn in the six months to July 31st. That's 8% higher than the same period last year.

Sales rose from €9.4bn to €10.5bn - an increase of 11%.

Chief executive, Pablo Isla said that investment in technology has helped the brands to keep growing. It began selling online in 11 new countries during the six months.

It also launched mobile payments in its Spanish stores and plans to extend this service to other countries. Close to one-fifth of the group's sales come from Spain.

"Both our online and bricks-and-mortar stores are seamlessly connected, driven by platforms such as mobile payment, and other technological initiatives that we will continue to develop," Mr Isla said.

83 new Inditex stores were opened in 38 countries during the period.

These results come weeks after Primark, H&M and Next have all reported disappointing sales, citing unseasonal weather conditions.