Spain-based clothing company Inditex has reported that its net income rose by 54% to €1.2bn ($1.28bn) in the first quarter (Q1) of fiscal year (FY) 2023.

Its gross profit was €4.6bn ($4.9bn), up by 14% compared to the corresponding period in FY22.

The retailer, which owns Zara, Stradavarius and Bershka, posted a gross margin of 60.5%, representing a growth of 34 basis points (bps) versus Q1 2022.

Driven by positive performance in all geographical areas and all concepts, the retailer generated €7.6bn ($8.1bn) in sales, a 13% increase against Q1 2022.

Inditex’s earnings before interest, taxes, depreciation and amortisation (EBITDA) also increased by 14% to €2.2bn ($2.3bn) while its earnings before interest and taxes (EBIT) rose by 43% to €1.5bn ($1.6bn).

The retailer recorded a profit before tax (PBT) of €1.5bn ($1.6bn) in Q1 FY23, up by 52% compared to the same period a year ago.

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Inditex expects a stable gross margin of +/-50 bps for FY23. It expects a -2.5% currency impact on sales in FY2023 at current exchange rates.

In a statement, the company said: “Inditex continues to see strong growth opportunities. Our key priorities are to continually improve the fashion proposition, to enhance the customer experience, to increase our focus on sustainability and to preserve the talent and commitment of our people.

“Prioritising these areas will drive long-term growth. To take our business model to the next level and extend our differentiation further, we are developing several initiatives in all key areas for the coming years.

“The creativity of our teams and the flexibility of the business model in conjunction with in-season proximity sourcing allows a swift reaction to customer demand. This situation results in a unique market position which provides our business model with great growth potential going forward.”

Last month, Inditex entered Cambodia by opening a Zara flagship store and launching online sales.

The retailer currently operates in 213 markets.

In May 2023, Zara selected the financial infrastructure platform, Stripe as a payment partner for its pre-owned marketplace.