STORY: Zara-owner Inditex is still in vogue with shoppers.

The world's biggest fast fashion company reported a better-than-expected 54% rise in first-quarter profit.

Sales kept pace after last year's strong showing, when it outperformed other retailers during the cost of living crisis.

Net profit hit $1.24 billion for the period ended in April - well above analyst forecasts.

The firm said Wednesday (June 7) sales of its spring-summer collection also jumped by 16% over the past month.

The results show Inditex has so far dealt with the challenges of keeping prices competitive despite cost pressures.

Some of those pressures include raising average wages by a fifth for shop workers in its home country of Spain.

Inditex reported solid sales of $8 billion even after it sold its Russian division and took on higher labor costs.

In-store and online sales were up 13%.

Part of the company's strategy is to keep prices higher outside the euro zone.

In the U.S., Mexico and Saudi Arabia some clothes are close to double the price in its home market.

Inditex has left rivals struggling to keep pace.

Sweden's H&M has found it difficult to compete for shoppers hit by the cost of living crisis.