MADRID: Zara owner Inditex, the world’s biggest fashion retailer, reported record profits for 2022 despite halting operations in Russia and soaring global inflation.

Net profit reached 4.1 billion euros ($4.4 billion) last year, a 27 percent jump from 2021, said Inditex, whose eight brands include younger fashion chain Pull&Bear and upmarket label Massimo Dutti.

Zara owner’s profits jump despite Russia closures

Sales also hit a record, surging 17 percent to 32.6 billion euros.

“The excellent results of 2022 show the strength of our business model,” said Inditex chief executive Oscar Garcia Maceiras.

Inditex, like many other Western companies, closed up shop in Russia last year following the invasion of Ukraine and sweeping Western sanctions against Moscow.

The group shut its 514 stores in Russia, its second biggest market after Spain.

The shops were sold to Emirati group Daher, which has business interests in retail and real estate, in October.

Inditex also overcame a surge in production costs that has hit manufacturers as inflation soared following Russia’s assault on Ukraine.

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The Spanish group underwent a leadership shake-up last year, with Marta Ortega, daughter of multi-billionaire founder Amancio Ortega, taking over as chairwoman.

Inditex profit jumps as retailer lifts prices

The company said it expects further growth in 2023, with sales between February 1 and March 13 already up 13.5 percent compared to the same period last year.