By Daniel Hunter

The owner of fashion retailer Zara has reported a 5% rise in annual profits to €2.5bn (£1.8bn).

Spanish fashion giant Inditex said like-for-like sales, which only factor stores open last year, were also up 5%, driven by a recovery in consumer spending.

The retailer also announced plans to invest about €1.35bn this year, up from €1.24bn last year. Inditex said it expects to open between 420 and 480 new stores in 2015, including new locations in London, Barcelona, New York and new stores in several cities in the US.

The new stores are likely to be larger, flagship stores, following its strategy of closing smaller locations and concentrating on much larger ones.