Barclays has reaffirmed its 'weight online' recommendation on Inditex, with a price target raised from €39 to €42, the day after the parent company of the Zara clothing chain published a better-than-expected quarterly trading update.

"Operating profit for the first accounting quarter was 2% ahead of our expectations and consensus, despite slightly lower-than-expected gross margin growth", the broker points out.

Barclays also notes that the Spanish textile group posted double-digit sales growth in the first three months of its financial year, and again in May, despite difficult comparatives.

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