Sales of springsummer collection rose 16 in past month
Net profit of 1.2 billion euros exceeded analyst expectations
Results come despite 20 rise in average wages in Spain
Company to invest 1.6 billion euros to expand store space by 3
Shares reach highest since 2017

MADRIDLONDON, June 7 Reuters Zara owner Inditex said on Wednesday sales of its springsummer collection gathered pace to jump 16 in May, as the retailer mitigates higher wage costs and keeps customers onside during a cost of living crisis.

The world39;s biggest fast fashion company reported a betterthanexpected 54 rise in net profit of 1.2 billion euros 1.24 billion for the first quarter that ended in April, exceeding analysts39; average expectations of 980 million euros in a Refinitiv poll.

Instore and online sales rose 13 to 7.6 billion euros in the first quarter, in line with the 13.5 seen in the first six weeks of the financial year.

The results show Inditex, whose market capitalization exceeded 100 billion euros 107 billion for the first time last week, has managed to stay competitive while raising prices, mitigating cost pressures, including a 20 rise in average wages for shop workers in its home market of Spain.

The company said it plans to invest 1.6 billion euros to increase gross store space in 2023 by about 3.

We expect increased sales productivity in our stores going forward, the company said in a statement.

Inditex, which also owns PullBear and Massimo Dutti, outperformed other…