Mango posts 15.3 percent sales rise driven by retail expansion

Mango Holding closed the 2015 financial year with sales of 2.327 billion euros (2.587 billion dollars), representing a 15.3 percent increase on 2014 when its sales totalled 2.017 billion euros (2.242 billion dollars) and grew by 9.3 percent. This increase, the company said, exceeded initial forecasts of 13 percent rise.

“We have transformed our business model to become much more attractive to our customers and gain their confidence. The commitment to growth to the detriment of short-term profit was planned and will result in a return to greater profitability in the coming years,” said the company’s Vice-Chairman, Daniel López.

Investment in expansion drives sales

Mango attributed the positive results to to progressive consolidation of the commercial transformation project in which the group invested 1.2 billion euros (1.3 billion dollars) in the last three years and increase its total selling space with the opening of 164 megastores.

81 percent of Mango turnover was driven by international activity, and the remaining 19 percent due to the domestic market. In Spain, which proportionally has the highest number of 25 megastores, turnover grew by 20.1 percent, endorsing the commitment to this new store format.

In 2015, the company opened 63 megastores, bringing the total to 164 by the year end. The new store projects include the flagship stores opened in Corso Vittorio Emanuele in Milan, on the Ramblas in Barcelona and in Henry Street in Dublin. 45 new store openings are planned in 2016. At the close of 2015, Mango had 2,730 stores in 109 countries.

E-commerce emerges as another key to growth

The turnover of online sales continues to increase its share of total group turnover, and at the close of the year, these transactions accounted for 10.7 percent of total sales. Specifically, sales via this channel totalled 234 million euros (260 million dollars), 27 percent more than the previous year. The company sells in 83 countries via its online platform. Last year, online expansion focused on South America, Asia and Africa, in order to complete the product offer in countries where the brand is already established through physical stores. The latest markets it has entered are Egypt and South Africa, meaning that Mango is now present in all five continents.

During 2015, Mango continued its commitment to an omni-channel strategy, based on placing the customer at the centre of all its activities. To meet the needs of all its sales channels, the company has completed its new logistics centre in Lliçà d’Amunt, Barcelona. In 2015, the Group also created 838 new jobs worldwide.

The growth in sales was accompanied by an increase in profitability. The impact of certain currencies and the increased amortisation through investments affected the profits of the Group, which made a profit of four million euros (4.4million dollars), compared to 107 (118 dollars) the previous year. The EBITDA of Mango Holding was 170 million euros (189 million dollars), compared to the total of 223 million (247 million dollars) the previous year.

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