Inditex, the world's biggest clothing retailer and owner of the Zara brand, stretched its lead over rivals like H&M with an 18 per cent rise in first-quarter profit, but saw sales growth slow slightly in recent weeks.

The Spanish company, which also owns younger fashion chain Pull&Bear and upmarket label Massimo Dutti, said net profit totalled €654 million for its first quarter that ended on April 30, in line with analysts' forecasts.

Earnings before interest, tax, depreciation and amortisation (Ebitda) were €1.1 billion, up 17 per cent year-on-year and above estimates.

Inditex has consistently outperformed H&M and other rivals in the past few years as a result of its online growth and fast-fashion model that allows it to whistle the latest trends from the runway into stores within days.

Its shares have rallied 13 per cent in the past three months as analysts expect the retailer to benefit from a more positive currency environment this year.

Close to half of the company's 7,385 stores, operating in 93 markets, report their earnings in currencies other than the euro.

In Inditex's first quarter, which runs from February 1 to April 30, it opened new stores in 30 markets and continued with an online push in southeast Asia, launching Zara online in Singapore, Malaysia, Thailand and Vietnam. It will launch its online business in India later this year. Zara makes up two thirds of group sales.