MADRID (REUTERS) - Zara owner Inditex reported on Wednesday (March 10) its net profit fell 70 per cent in 2020 to 1.1 billion euros (S$1.76 billion), a steeper drop than expected, after a year of global lockdowns and dampened demand caused by the coronavirus pandemic.

Fourth quarter net profit fell 53 per cent to 435 million euros out of sales of 6.3 billion euros as restrictions on shopping came back into force across much of Europe around Christmas, the company said. Around 15 per cent of its shops worldwide were still closed due to Covid-19 restrictions as of March 8, Inditex said in a statement.

Six analysts polled by Refinitiv expected a quarterly net profit of 602 million euros, while a poll of 24 analysts forecast full-year net profit at 1.3 billion euros.

The Spanish fast fashion retailer, which operates 6,829 stores worldwide, said total sales in 2020 were down 28 per cent from last year at 20.4 billion euros, as an unprecedented 77 per cent of online sales increase partly offset the pandemic's negative effects.