The world’s biggest fashion group, Inditex, has seen its first annual profit fall in five years, hit by investment in stores and weak currencies in its non-EU markets hit financial targets.

In the 12 months to the end of January net income rose by just 1% to Eu2.4 billion (£2 billion). Inditex opened 331 new stores in 2013 across its either high street chains which include Zara, Massimo Dutti, Bershka and Pull and Bear. It also announced that it plans to open between 450 and 500 additional stores in the coming year.

Sales across all its stores increased by 5%, but sales growth in Europe, excluding Spain, was just 0.5%.

Homeware and interiors brand Zara Home saw the sharpest rise in sales, up by 29%.