Spanish fashion retailer Inditex SA (IDEXF.PK) Wednesday said profit in the first quarter rose slightly from the prior year, helped by a 5 percent growth in sales, amid extended cold weather in Europe. The company said its Zara concept plans to launch online sales in the Russian Federation at the beginning of the Autumn/Winter 2013.
Inditex operates in eight store formats - Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe. It is made up of over 100 companies involved in textile design, manufacturing and distribution.
Net income attributable to the controlling company rose to 438 million euros ($582.7 million) from 432 million euros in the prior year. Earnings per share rose to 70 euro cents from 69 euro cents.
Net sales for the quarter climbed to 3.593 billion euros from 3.416 billion euros in the prior year. Cold weather was longer in Europe this time, delaying spring sales.
Inditex's Board of Directors has proposed to the General Shareholders Meeting a fiscal 2012 total dividend of 2.20 euros per share. The firm paid 1.10 euros per share on May 2 as interim dividend and 1.10 euros per share will be payable on November 4 as final ordinary and bonus dividend.
During the quarter, the retailer opened stores in 30 markets. At the end of the quarter, the firm operated 6,058 stores in 86 markets. Further, Inditex said its space growth and store openings for the year are on track.
Dwelling on current trading, Inditex said store sales in local currencies have increased 8 percent from May 1 to June 7.
Zara plans to launch online sales in the Russian Federation at the beginning of the Autumn/Winter 2013 season, the retailer added.
The stock fell 2.2 percent on Tuesday to close at 97.84 euros.
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