AFP, Madrid

Zara owner Inditex, the world’s largest fashion retailer, on Wednesday reported a record net profit for the first quarter, even as the Spanish group faces growing competition from Chinese-founded online rival Shein.

Inditex, whose other brands include Bershka, Massimo Dutti and Pull&Bear, has posted solid earnings and seen its share price soar in recent months despite inflation and geopolitical headwinds.

Its net profit reached 1.3 billion euros ($1.4 billion) in the quarter ending April 30 -- an 11 percent increase from the same period last year and an all-time high for a three-month span usually marked by weaker earnings.

Sales rose seven percent to 8.2 billion euros.

The profit and sales figures were close to those forecast by analysts surveyed by financial data firm FactSet.

“Inditex continued with a very robust operating performance due to the creativity of the teams and the strong execution of the fully integrated business model,” the company said in its results statement.

The company said sales remained strong at the start of the second quarter, rising 12 percent between May 1 and June 3 when compared to the same period a year ago.

Inditex announced it would invest 900 million euros per year in 2024 and 2025 to expand its logistics capacities, “in view of the strong future growth opportunities”.

The fashion giant, which since early 2022 has been headed by Marta Ortega, daughter of billionaire founder Amancio Ortega, has seen its share value grow by more than 40 percent over the past year.

But Inditex, H&M and other retailers are facing increasingly tough competition from online fast-fashion platform Shein, which is expected to pursue a multi-billion-pound listing on the London stock market.