Mango saw sales recover in-store while online continued to grow in its strongest full-year results for more than a decade. Both sales and profits were more than a fifth higher in 2022 than in the previous year.
In-store sales recovered following post-pandemic reopenings, while ecommerce maintained momentum that had grown while stores were closed. Just over a fifth (22%) of Mango sales took place in its domestic market of Spain, while France, Italy and the UK remain key markets.
The update came as the Barcelona-based fashion group this week reports turnover of €2.7bn (£2.4bn) in 2022, 20.3% higher than in 2021 – and 13.2% higher than in pre-pandemic 2019, in which the retailer also saw record revenues. Some 36% of sales – €960m (+1.9%, £849.1m) – took place online, while 82% of sales were of womenswear.
Pre-tax profits of €103.3m (£91.4m) were 26.2% higher than the previous year, and net profits of €81m (£71.6m) were 20.9% up on 2021, and four times as high as in 2019.
The retailer says that although the closure of its direct operations in Russia following its invasion of Ukraine hit its balance sheet by about €20m (£17.7m), it has benefited from store reopenings across other markets and the wider return to “social normality”. It says that reopening all of its stores has had “a positive impact on the physical channel, while the online channels has maintained its momentum”. It opened a net 119 stores during the year, closing with a total of 2,566. It also has a presence in 115 markets after returning to Cameroon and Morocco.
“We have closed what is probably one of Mango’s best years, overcoming complex market circumstances and committing to strong investments with a future vision and ambition,” says Toni Ruiz, chief executive of Mango.
“At Mango, we have consolidated ourselves as one of Europe’s leading fashion groups. We have demonstrated the validity and robustness of our business model based on a unique ecosystem of channels and partners. In the last few years, we have recovered our essence, with unique design as a starting point and innovation as a core value in all the departments of the company.”
In 2022, the retail group signed its first refinancing agreement linked to ESG (Environment, Social and Good Governance) criteria). It has introduced sustainability criteria as a result.
As profits grew Mango invested at a higher rate, spending €107m (+138%; £94.6m) on stores, technology and infrastructure. It is building a new Mango Campus company headquarters while expanding its Barcelona global distribution logistics centre in order to manage all of its store and online stock together. As a result, the centre will be able to handle 85,000 garments an hour.
Mango is rated Top150 in RXUK Top500 research.