The world's two top fashion retailers, Zara owner Inditex and Hennes & Mauritz, reported strong sales growth today, benefiting from a recovery in consumer spending in their core markets in Europe.

Inditex, whose brands also include Massimo Dutti and Stradivarius, said sales rose 11 per cent in local currencies between February 1st and June 8th, up from the 8 per cent recorded in the year to January 31st.

First-quarter sales grew 4.3 per cent to €3.75 billion. Net profit fell 7.3 per cent to €406 million, the biggest decline in five years due to the strong euro, but beating the average forecast from analysts.

It is benefiting from the start of a recovery in its home market Spain where it still makes about one fifth of sales.

H&M said sales rose 19 per cent in May, its fastest growth in six months. – (Reuters)