Mango reports record full-year revenues as online sales surge
12 Mar 2020
Spanish fashion brand Mango has reported a record year of revenues partly thanks to strong growth in online sales amid its ongoing transformation.
Full-year revenues at the company increased by 6.3 percent to a record 2.37 billion euros in 2019, compared to 2.23 billion euros in fiscal 2018.
The increase in sales comes as the company significantly improves its profitability. Mango’s EBITDA surged by 43.7 percent to 194 million euros in 2019, compared to 135 million euros the year before. The company made a gross profit of 41 million euros.
For the third year running, the company also managed to reduce its net financial debt - it’s now at 184 million euros.
By channel, online sales, which now represent 23.7 percent of total group turnover, surged by 26.7 percent to 564 million euros. The Mango webpage received more than 600 million visits in the period, with 80 percent of those via mobile devices.
Mango attributed its ten global logistics warehouses for its success in attending to online sales “in a quicker and more efficient manner.” It also expects its expansion of the new logistics centre in Lliçà, Barcelona, announced last November, to further help e-commerce growth.
Physical stores achieved comparable growth of 5.5 percent in the period, which Mango considered “a very positive result given the evolution of the market.” In absolute terms, the company closed the financial year with 2,188 stores - 5 more than the previous year - and with a selling space of 803,000 square metre - 1 percent less than in 2018.
Record year of sales at Mango
By geographical regions, the international activity of the group remained at 77 percent of total turnover, while its home Spanish market, its main sales market, represented 23 percent.
By business lines, Man, Kids and Violeta accounted for 18 percent of sales. Mango noted that Mango Man was a particularly strong performer, growing 20 percent in 2019 and achieving a turnover of over 200 million euros.
Toni Ruiz, who was appointed Mango’s new CEO last week and has been credited with leading the brand’s transformation in recent years, said in a statement: “2019 has been an extraordinarily satisfactory year, in which we achieved the highest sales figure in our history and we have obtained the largest increase in profit in a single financial year. These excellent figures are the result of the effort and the great work of all of us who form part of Mango and will allow us to continue to build the company we want to be in the future.
“Our financial situation is better than it has been for many years. Today we are able to repay all the debt the company generates in a single year. Our goal is to continue reducing it, but without renouncing projects that will increase our profitability.”
Photo credit: Mango