Europe's top fashion retailer Inditex profit up

(Adds share price, comment by CEO)

By Sonya Dowsett

MADRID, June 13 (Reuters) - Inditex (ITX.MC), Europe's biggest fashion retailer, lifted its first quarter profit by a third to a forecast-beating 200 million euros ($266 million) thanks to cost controls, the Zara chain-owner said on Wednesday.

Inditex, which competes with Sweden's H&M (HMb.ST), said it generated strong margins in the first quarter from February to April. Its net profit easily beat a 183 million euros average forecast in a Reuters poll.

The Spanish fashion house, whose stores range from teen brand Bershka to classic line Massimo Dutti, posted a 19 percent rise in sales to 2.039 billion euros, exceeding an average forecast of 2.028 billion. Inditex, whose ambitious expansion plans will see stores opening in Thailand, Mexico and Saudi Arabia, opened 114 new stores in the quarter including the first Zara store in Chinese capital Beijing.

Zara sells mid-priced, high-fashion womens, mens and childrenswear, with a quick reaction to catwalk trends and rapid stock turnover keeping customers interest fresh in items like brightly coloured 1960s print blouses and frilled dresses.

Inditex said second quarter sales were trading in line with expectations and dispelled concern about a potential slowdown in Spain.

Its shares climbed 0.61 percent to 45.20 euros by 1008 GMT, outpacing the Spanish blue-chip Ibex 35 index, which was down 0.4 percent.