The net profit of Spanish fashion giant Inditex, which owns Zara stores, increased by 5% in 2014. On Wednesday, the company reported profit for February 2014 through January 2015, which rose to 2.5 billion euros ($2.7 billion) from 2.4 billion euros for the previous 12-month period. The sales jumped 8% to 18.1 billion euros.

Zara sales were strong this winter with the introduction of leather skirts and tunics. In the first six weeks of the first quarter, the sales rose 13% in euro terms.

Results at the Zara owner were in line with expectations in a Reuters poll, which had predicted 2.49 billion euros net profit on sales of 18.06 billion euros.

The company, which was founded in 1975 by Amancio Ortega is based in La Coruna at Spain's northwestern region. It operates eight brands including Massimo Dutti, Bershka and Oysho. The retailer has opened 343 new stores over the year for a total of 6,683 and increased its staffing by 8,741 employees to 137,054.

Inditex has planned to open new stores in London, Barcelona and several US cities, including three in New York.

Shares of the company were up 2.4% at 28.8 euros in Madrid. Shares are trading at around 30 times this year's expected earnings, versus around 25 times for nearest rival Hennes & Mauritz (H&M).

Inditex mentioned that it will close small stores and concentrate on larger flagship stores, such as the recent purchase of a building in New York's SoHo, which will house a new flagship Zara store.

After publishing half-year results in September, Inditex said Zara would be selling direct over the internet in 27 markets by the end of the month. Inditex confirmed that it would invest about _1.35bn this year, compared with _1.24bn in 2014.