Inditex, the parent company of Zara and the world’s largest fashion retailer, reported a record net profit for the first quarter, showcasing its resilience despite rising competition from Chinese-founded online rival Shein.

Inditex, which also owns brands such as Bershka, Massimo Dutti, and Pull&Bear, has demonstrated robust financial performance in recent months. The company navigated through inflation and geopolitical challenges to achieve a net profit of 1.3 billion euros ($1.4 billion) for the quarter ending April 30. This marks an 11 percent increase from the same period last year and sets a new record for the company in a typically slower earnings period.

Sales for the quarter rose by seven percent, reaching 8.2 billion euros. These results align closely with analyst predictions, as surveyed by financial data firm FactSet.

“Inditex continued with a very robust operating performance due to the creativity of the teams and the strong execution of the fully integrated business model,” the company stated in its results announcement.

To capitalize on future growth opportunities, Inditex has announced plans to invest 900 million euros annually in 2024 and 2025 to enhance its logistics capabilities.

The fashion industry is witnessing increased competition from Shein, an online fast-fashion platform that is rapidly gaining market share. Shein is reportedly preparing for a multi-billion-pound listing on the London stock market, posing a significant challenge to established players like Inditex and H&M.

Inditex’s ability to maintain strong performance amid such competitive pressures highlights its strategic agility and operational excellence in the global fashion retail market.