Zara UK has returned to profit for the first time since 2007.
The UK Zara stores, part of the Spanish fashion giant Inditex, made a pre-tax profit of £618,692 in its full year to January 31 according to accounts filed at Companies House. This was compared to a £20m loss for the same period last year.
Sales grew 13% for the year to £310.6m helped in part by new store openings. In the accounts it said that trade had improved since the summer.
It said that the main focus for the last year was to improve profitability by gaining traction in sales growth “for the current portfolio, while keeping operating expenses under tight control.”
Its financial year had started on a negative note, it said, with the recession and poor consumer confidence keeping some shoppers away.
It said that despite improvement in trade the economic situation remained “difficult” and expects it to remain volatile throughout the year.
Inditex has 65 Zara stores and will launch its first transactional website in the UK next month.
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