Mango’s US Enlargement Helps Gross sales High $3 Billion in 2023

Spanish trend retailer Mango reported on Monday file gross sales of €3.1 billion ($3.39 billion) in 2023, beating its forecast after matching home rival Zara’s robust growth in the US.

The Barcelona-based model stated gross sales jumped 19 % final 12 months to exceed its forecast of €3 billion by way of a give attention to get together put on and trend items for upmarket consumers who’re much less delicate to larger costs.

That helped it fend off strain from the speedy progress and discount costs of on-line gamers akin to China-based Shein.

Mango has positioned itself extra as a premium retailer and has larger costs than Inditex-owned Zara and Sweden’s H&M in some get together items, retail intelligence firm EDITED stated.

The most important value rises are in attire, the place common in-stock costs grew 46 % for the 2024 spring assortment versus two years in the past in markets such because the US, in line with EDITED.

“For a lot of gadgets costs haven’t elevated, however the value mixture of our assortment has,” stated Mango CEO Toni Ruiz, including the corporate has lowered the variety of items offered at a reduction.

Mango’s web revenue rose to €172.1 million, from €81 million in 2022, Ruiz stated at a press convention. Its gross margin was close to 60 % in 2023 and the corporate has zero web debt, Mango stated.

The family-owned trend model is following within the footsteps of the world’s largest listed fast-fashion group Inditex, which can be increasing within the US.

New US Shops

Ruiz stated the corporate plans to open 30 extra shops in the US, and make that market its third largest by 2026, as a part of a plan to open 500 new outlets worldwide within the subsequent two years to achieve 2,700 shops.

The corporate invested €187 million final 12 months, primarily in new shops and logistics centres.

Round 20 of the 130 shops Mango opened final 12 months have been in the US, the place it started an growth in 2022 with a flagship retailer in New York.

It goals to achieve whole annual gross sales of €4 billion and double its web revenue by 2026 because of the growth, Ruiz stated.

He stated Mango has no plans to record on the inventory market and doesn’t want new buyers to lift sources for an growth plan that can require €600 million of funding by 2026.

The corporate has been finishing up an inner reorganisation, creating a brand new board of administrators led by founder Isak Andic. Ruiz acquired a 5 % stake within the firm final 12 months.

By Corina Pons and Charlie Devereux; Editors: Alexander Smith and Susan Fenton

Study extra:

Mango to Add 500 Shops by 2026

The Spanish fast-fashion model additionally expanded its board and forecast 2023 revenues above €3 billion.