Inditex Nine-Month Profit Rises as New Stores Beat Mild Weather

MADRID, Spain — Inditex SA, the world's largest clothing retailer, reported nine-month profit in line with estimates as the company continued to add new stores under the Zara, Bershka and Massimo Dutti brands.

Net income climbed to 1.69 billion euros ($2.1 billion) through October from 1.67 billion euros a year earlier, the Arteixo, Spain-based owner of the Zara chain said today in a regulatory filing. Analysts surveyed by Bloomberg had estimated earnings of 1.68 billion euros. Revenue increased 7 percent to 12.7 billion euros, also in line with estimates.

Inditex opened 230 new stores in the period, including a Zara outlet in the historic heart of Vienna, which helped make up for mild weather in Europe. Hennes & Mauritz AB, its largest rival, also reported higher sales. About 72 percent of Inditex stores are located in Europe, with Spain the largest market.

Inditex fell 1.2 percent to 22.35 euros in Madrid trading yesterday, extending this year’s drop to 6.7 percent. That compares with H&M’s 6.1 percent gain over the same period.

The company reports earnings for a fiscal year that runs from Feb. 1 to Jan. 31.

By Rodrigo Orihuela; editors: Kenneth Wong, Paul Jarvis, Marthe Fourcade.