Barcelona-based fashion retailer Mango achieved record sales of $3.39 billion in 2023 and committed to further expansion in the U.S. as the company pledged to open around 500 stores globally by 2026.
The company is aiming to make the U.S. its third largest market and has ambitious plans following its latest stellar financial update.
Online turnover also soared to around $1.1 billion for the first time, which made up around a third of the group’s total revenues. International business accounted for 77% of Mango’s turnover last year and its U.S. business also entered Mango’s top five markets in terms of sales for the first time.
The company also celebrates its 40th anniversary in 2024, which led Mango to present its new Strategic Plan, called 4E: “Elevate, Expand, Earn and Empower.”
In addition, the company is looking to open 30 more stores in the United States, and make that market its third largest, by 2026 as part of global intentions to open 500 new stores by the same year in key markets such as the U.S., Canada, France, Italy, Germany, the U.K., Poland, India and in its domestic Spanish market.
“In a very competitive environment, Mango has managed to significantly increase its sales, achieving the best results in the company’s history,” Mango CEO Toni Ruiz said.
The company invested over $200 million last year, mainly in new stores and improved logistics and distribution facilities. In all, it opened 130 new stores in 2023 and reformatted another 80, as it reached around 2,700 outlets in a total of 115 markets worldwide.
About 20 of the 130 stores Mango opened in 2023 were in the United States, where it began its expansion in May 2022 with a flagship store in New York – having made two previous attempts to crack North America – as it began by focusing on states where online sales were already well established.
“Something has changed. They now have a different and better perception of European brands,” Ruiz said in an interview around this time last year when he affirmed the Spanish brand’s fresh focus on the U.S., as it shifted its growth strategy away from China.
Mango’s U.S. relaunch began with the opening of a flagship store on New York’s Fifth Avenue, which was followed by expansion in Florida and further store openings in Texas, Georgia and California.
Record Mango Results
For its latest results, Mango’s net profit rose to $188.1 million, well above the $88.5 million achieved in 2022, while its gross margin approached 60% in 2023, with the company carrying no net debt the retailer said at its results presentation.
In announcing its financial performance, which was ahead of its own forecast, the Spanish brand said that its sales had risen by 15% last year to exceed its forecast of $3.28 billion and put that strong performance down in part to a focus on party wear and fashion apparel for upscale shoppers who are less sensitive to higher price points.
That helped it differentiate from global fashion discounters as Mango positioned itself as a more premium retailer, and Ruiz said the company had also reduced the amount of merchandise that it had to discount, which had helped bolster margins.
“For many items prices have not increased, but the price mix of our collection has,” Ruiz said of the strategy
Mango aims to reach total annual sales of nearly $4.4 billion and double its net profit by 2026 as a result of its projected expansion, Ruiz said, while he also confirmed that Mango does not have any plans to list on the stock market and will not require new investors for a growth strategy that will likely cost the retailer in the region of $650 million by 2026.
The company has also been carrying out an internal reorganization of its senior management, appointing four new non-executive directors and led by founder Isak Andic as non-executive chair.
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