Zara’s British arm suffered a fall in earnings last year despite a spike in sales.
Pre-tax prfits dropped from 32.7% to £39.2m in the year to January 31, 2017, while sales rose 13% to £602.7m.
It also closed stores in Oxford Circus and Gatwick and moved its London head office.
The results were in stark contrast to Zara’s last UK figures, when pre-tax profits jumped from £49.1m to £58.3m as sales rose 8.2%.
Despite that, the retailer’s performance was still market-beating, with much of UK high-street fashion retail suffering from the combined effects of a weakened pound, shaky consumer confidence and a shift in spending away from material goods and towards experiences.
The high street is also taking a buffeting from the fashion etailers, the astronomical growth of which shows no sign of abating. The influence of global chains such as Inditex and its competitor H&M is also keenly felt by smaller British retailers.