Zara-owner Inditex says 2020 profits slumped nearly 70% to just over 1.3 billion dollars.
That was a steeper fall than forecast, with the firm hit by global lockdowns and weak demand.
Though sales have rebounded in China, lockdowns persist in much of Europe and the U.S..
Inditex says around 15% of its stores were still shut as of early March.
A surge in online sales offered some compensation.
The world's biggest clothing retailer has also trimmed its inventory and got rid of some stores.
751 shops have already gone, out of a targeted 1,200.
The company is focusing on flagship locations, where it can serve both online and in-person customers.
Inditex may also take some comfort from results at arch-rival H&M.
Over the 12 months to November its profits were down 88%.