MADRID, June 12 (Reuters) - Spanish fashion group Inditex reported a 10% rise in first quarter profit on Wednesday, as foreign currency effects moved back into favour for the owner of Zara and Massimo Dutti after two years of nibbling away at margins.
The world’s biggest clothing retailer reported net profit of 734 million euros ($832 million) for the three months from Feb. 1 to April. 30, on sales up 5% at 5.93 billion euros, despite adverse weather conditions in the latter part of the period.
Sales at constant exchange rates for the first six weeks of the second quarter were up 9.5 percent.
Inditex generates over half of its sales in other currencies that have to be converted back into euro for the financial report. Those currencies have strengthened slightly against the euro compared to a year ago, on average, helping reported sales.
Societe Generale and Credit Suisse estimated sales at Inditex were reduced 3.5% last year by this effect, moving to a positive effect this quarter. ($1 = 0.8821 euros) (Reporting By Sonya Dowsett; Editing by Paul Day)