Historical record of sales at Mango and the best result in 10 years

BarcelonaIt has been a “crossing of years” with a hiatus called covid, but Mango presented this Thursday its best results in a decade and an absolute record turnover. The Catalan fashion firm founded by Isak Andic closed 2022 with sales of 2,688 million euros, the highest figure in its history, 20% more than the previous year and 13% more than in last exercise prepandemic. The company’s profits stood at 81 million euros, also an improvement of almost 21% and which quadruples the gains achieved before the impact of the coronavirus shook its activity for months. The company had not achieved this profitability since the 2012 annual accounts.

20%

It is the increase in both Mango’s profit and turnover in the last year

“It has been a parenthesis to the transformation we were doing before. We are reaping the fruits of the work of many years. We have the ambition to continue with this great expansion”, explained the CEO of Mango, Toni Ruiz, during the presentation of results In the last year, the fashion chain has opened 119 new stores and added two new countries to its commercial network (Cameroon and Morocco, where it has returned after leaving). The multinational is very focused on growing in areas of the world such as India and the United States, where it aspires to have 40 establishments by 2024 and where it already has a flagship store on Fifth Avenue in New York.

With the outbreak of the war in Ukraine, Mango chose to close its own points of sale in this market, but its logo is still present through about 90 franchised stores. Ruiz has insisted that it is now these business partners who contact the suppliers and that the company no longer sends goods to Vladimir Putin’s country.

Price increase

The impact of 20 million euros from the war conflict has been added to that of skyrocketing inflation and its consequences on consumption by Mango customers. The CEO of the firm has admitted that the prices of its products have increased, although this rise has not been “linear”, but he has assured that this increase is also explained by the improvement of quality in its collection . He also noted the chain’s investment pace, which allocated 107 million euros last year (double that of the previous year) to new openings and areas it considers key such as technology or sustainability.

During the peak of the pandemic, online sales became the lifeline of the fashion sector, faced with restrictions on physical stores. For Mango, in 2022 this channel accounted for 36% of total turnover (960 million euros, 18 million more), a slightly lower percentage than the previous year. Ruiz has defended that this ratio does not obsess them and has justified that the reduction can be explained by several factors, such as the reopening of sales points itself, which has reduced the weight of online income.