Inditex, the world's biggest clothing retailer, beat forecasts with a 6 percent rise in profits. Sales were strong because fast turnover allowed the owner of fashion chain Zara to react quickly to unseasonable weather.
BROADCAST AND DIGITAL RESTRICTIONS~ * Broadcasters: NONE Digital: NONE**~ In the fast paced world of fashion, it seems first past the post takes all. Inditex, the world's biggest clothing retailer beating forecasts to post a 6 percent rise in profits for first-quarter sales. The clothing giant which owns shops such as Zara & Massimo Dutti, is well known for whisking the latest trends from runway to stores in a matter of days. It's quick reaction to unseasonable weather also contributing to growth. SOUNDBITE (English) ANALYST AT CMC MARKETS, JASPER LAWLER SAYING: "Some of the older retailers out there struggling to keep up in terms of this fast fashion and that's what is keeping them ahead although I think what is encouraging for some UK companies like Next Marks and Spencers is that there had been a lot of worry that there was this shift going on in consumer tastes from stuff to experience these results sort of suggest that maybe that has been a bit overplayed." Despite results being tempered by negative currency effects, Inditex reported net profits of $621 million dollars - for the quarter to April 30th. That's a 12 percent jump on the same time last year. The results sent its shares soaring - up 3.2 percent. It also flies in the face of other major fashion retailers - which have been complaining of weaker demand. Swedish rival H&M reported a pickup in sales growth in May - but still fell just short of analysts expectations. It's full second-quarter report, due next week, will show to what extent reducing the prices of spring clothes helped boost growth.