It's not all roses for Zara Australia.
Zara Australia has posted some unexpected results for the financial year.
Accounts lodged with the Australia Securities and Investments Commission have exposed the cost of doing business down under.
While sales for the global retailer are strong, cost pressures have started to appear.
1. Earnings before interest and tax fell 33.1 per cent to $15.5 million in the 12 months to January, 2014.
2. The fall in earnings was despite a 26.9 per cent growth in sales to $179 million.
3. Zara Australia's earnings before interest and tax fell from 16.5 per cent to 8.7 per cent.
4. Gross margins dipped from 63.6 per cent to 59.5 per cent.
5. Cost of goods rocketed 41 per cent while operating costs rose 38 per cent.
6. All in all, net profit for the international retail giant fell 35.6 per cent in Australia to $10.2 million.
