Inditex reports larger than expected profit

Inditex SA, the world's largest clothing retailer has

reported profits that beat all estimates.

The company which owns high street chain Zara also includes Pull and Bear, Berschka, Uterque, Massimo Dutti, Oysho, and Stradivarius.

The report will undoubtly fuel expansion both in stores and online and comes on the back of the newly launched and long awaited UK ecommerce operation and a new inhouse, London based Zara press office.

Fourth quarter net income gained 14% to 553 million euros, according to calculations based on a full year results. According to estimates by Bloomberg, shares rose 6.1% from last summer.

Even as consumer spending across Europe and the US is currently in question, Inditex has plans to open 500 more stores in 2011 as a boost to investment. Half of these new stores will be opened in Asia and Inditex has plans to make its other brands available in the UK online during the latter part of 2011. This seems to indicate online retail is proving successful for the company's brands - currently available online in 16 countries.

According to a spokesperson, Inditex plans capital expenditure of 'roughly 800 million euros this year.' This comes after Zara recorded full net sales rising to 12.5 billion Euros, which keeps Inditex ahead of high street competition, Hennes and Mauritz(H&M) which came in at 11.2 billion Euros.

Inditex introduced Zara to India last year with good response leading to new store openings in Mumbai and Delhi. There are also store openings planned for Australia and South Africa.

Zara has become a reliable go-to for savvy shoppers looking for catwalk inspired, fast fashion pieces yet with a chic edge for an accessible price point.

An Inditex spokesperson said the figures and store expansion 'bodes well for the future.'