Zara UK has posted a dramatic plunge in full-year profits in its UK market, despite sales increasing.
According to reports at Companies House, the fashion retailer saw full-year pre-tax profits plummet by 56.9 per cent from £51.8 million to £22.3 million.
Meanwhile, sales reportedly went up 10 per cent year-on-year from £704.8 million to £772.5 million.
Zara UK which is owned by Spanish parent Company Inditex attributed the results to its selling and distribution costs, which increased seven per cent during the year.
The retail conglomerate, which also owns Pull & Bear, Bershka and Massimi Dutti – said it would continue with plans to open more Zara stores in the UK as opportunities arise.
The news comes several weeks after Spanish Company Inditex revealed strong first-half growth for the whole company, with half-year sales topping €12.8 billion (£11.4 billion) for the first time.
In the six months to July 31, sales were up seven per cent year-on-year, while like-for-like sales were up five per cent.
Group-wide net profit also reached a new record of €1.6 billion (£1.4 billion) for the half-year period, up 10 per cent on the same period in 2018.