Spanish high street retailer Mango has seen profits soar to the highest level in almost a decade as its turnover neared record 2019 levels.
The company reported growth of 21.3 percent to 2.234 billion euros, with online sales accounting for 42 percent of turnover. Profits rose to 67 million euros, trebled from the 21 million euros it saw in 2019.
Mango CEO, Toni Ruiz, said in a statement: “The 2021 results demonstrate the positive evolution of the company in recent years and is the result of the hard work of the entire team. Today, Mango is in an optimal position to face the future by promoting our brand and our product, remaining at the service of our customers and continuing our journey towards sustainability and operational excellence.”
Mango said demand for childrenswear grew 60 percent over 2019, with menswear, homewear and childrenswear accounting for 18 percent of turnover. Womenswear remains the company’s best category with a share of 82 percent.
“The year 2021 was also full of challenges and uncertainty, but we used the strength of the Mango brand to reinforce our position in the market, and at the same time increase our profitability, as we had promised,” Ruiz iterated.
In 2021, Mango investment rose to 45 million euros, representing an increase of 63.6 percent compared to the previous year. The majority of these resources were spent on accelerating its online transformation and refurbishing the store network.
Mango is currently analysing the impact the crisis in Ukraine and Russia will have on its business during 2022. The company has temporarily suspended its operations in Russia, while guaranteeing its employees maximum coverage.
Throughout 2021, Mango said it made a major effort in regards to sustainability and corporate responsibility, addressing four key areas: the use of sustainable fibres, circularity, CO2 emissions and transparency in its supply chain.
Mango published a new list of factories in its global supply chain. In addition to updating its list of Tier 1 factories, Mango has included Tier 2 factories, related to production processes, becoming the first Spanish company in the fashion industry to publish both lists. The company has set itself the objective this year of publishing the list of Tier 3 factories, related to suppliers of materials such as fabrics and fittings.
During the last financial year, 80 percent of garments it marketed incorporated the Committed name. A milestone which means that it has almost doubled the percentage of sustainable garments in its total production. Committed articles are those which contain at least 30 percent more sustainable fibres or have been manufactured with more sustainable production processes.
With regard to the circular economy, in 2021 Mango focused on implementing actions to reduce the generation of waste associated with its production and on managing waste responsibly. The programme to collect used garments in store via Committed Boxes was present in 15 countries, 5 more than in 2020, collecting 63 tonnes of clothing, 50 percent more than in 2020.
In line with its net zero target by 2050, Mango said it is committed to reduce its direct emissions by 80 percent, as well as those generated by the Scope 1 and 2 energy it consumes, by 2030.