Mango Doubles Profits and Embarks on Ambitious Global Expansion
In an impressive stride of financial success, Mango has announced a year of record-breaking results, positioning the fashion giant on a secure pedestal for its ambitious expansion plans ahead. The company’s net profit soared to an astounding 172 million euros in 2023, doubling the figures from the previous year at 82 million euros. Additionally, Mango’s sales climbed beyond 3.1 billion euros, marking a 15% increase, solidifying the company’s standing in the competitive fashion industry.
Boasting a net debt-free status and a robust cash reserve, Mango, led by Isak Andic, is set to navigate through its growth trajectory using internal resources. “We do not plan to go public,” Mango’s CEO, Toni Ruiz, affirmed during a financial presentation at the company’s headquarters in Palau-solità, Vallès Occidental.
Undergoing a significant professional transformation in recent years, including revamping its Board of Directors with notable external members like Marc Puig, president and CEO of Puig, Mango has solidified its foundation. Toni Ruiz recently became a shareholder, acquiring a 5% stake, emphasizing the company’s intention to remain tightly held without seeking external capital.
Mango has ambitiously committed to opening 500 new stores within the next three years and renovating 150 existing outlets across its global network, which currently spans over 2,700 locations in 115 markets. This extensive expansion, equating to nearly one operation per business day until 2026, will see an investment of 600 million euros to enhance technological and logistical operations and to broaden its physical retail presence significantly. The primary focus for this expansion includes Spain, France, Italy, Germany, the United Kingdom, Poland, India, Canada, and notably, the United States, which has recently ascended to Mango’s top five markets in terms of revenue.
Mango’s strategic growth plan aims to propel the company’s revenues beyond the 4,000 million euro mark in the next three years—a 29% increase from 2023. This growth is anticipated not only through geographic expansion but also through the introduction of high-quality collections which are expected to elevate the price mix. “We have a lot of room for organic growth and a lot of market share to gain,” highlighted Ruiz, underlying the company’s optimistic outlook for the future.
North America emerges as a significant focal point for Mango’s expansion, where it has established 21 retail points, including a flagship store on Fifth Avenue in New York. Plans are underway to inaugurate an additional 30 stores across the United States by 2024, which is expected to propel the country among Mango’s top three markets by 2026. Notably, international sales constitute 77% of Mango’s turnover, with a third of its revenue generated from e-commerce.
By business lines, Mango’s Man, Kids, and Teen segments have witnessed nearly 20% growth in revenue, showcasing the brand’s widespread appeal across various demographics. The Woman segment continues to be Mango’s powerhouse, registering a growth rate close to 15%.
As Mango gears up to celebrate its 40th anniversary in 2024, it not only commemorates past successes but also looks ahead to future endeavors with the construction of a new campus, set to open next year. In recognition of Isak Andic’s monumental contributions to the business world and the fashion industry, he will be honored with the VIII Kingdom of Spain award for business career on March 18, awarded by a prestigious coalition of business circles.
With a confident stride into the future, buoyed by record profits and a clear vision for expansion, Mango is set to further cement its position as a global fashion leader, delivering on its promise of growth, innovation, and enduring appeal.
