Mango's international boost: FY net profit jumps 79 percent

ANALYSIS_ Spanish fashion retailer Mango has closed a quite profitable year, seeing its full year net profit jumped by 79 percent. Profit after tax in 2012 amounted to 113.4 million euros, with 84 percent of turnover coming from foreign markets

and 16 percent corresponding to the domestic market.

Mango closed 2012 with a turnover of 1,691 million euros, 20 percent more than in the previous year. As explained in a corporate note, Mango relates the good figures to the changes implemented during the first half of 2012 in areas such as marketing, window dressing, the collection, pricing, distribution and advertising.

Big push for international expansion is also paying off and has had a big impact in the business strategy as well, with the new distribution of stores as a clear sign of its importance. Mango has opened a total of 197 stores in 2012, 180 abroad and 17 in the domestic market.

The company almost doubled its online sales, which reached 70 million in the 46 markets in Europe, Asia and North America.

For 2013, Mango has announced investments of 265 million euros to be allocated to new store openings, renovations of stores and logistics and information systems.

Further international expansion to boost turnover

Mango’s most ambitious expansion plans are for Europe, its main market. The Spanish retailer is to open large format stores - "megastores", which will integrate all lines of the group: HE by Mango, Mango Touch, Mango Kids and Mango Sport & Intimates, and will have an area of between 800 and 3,000 square meters. The brand also come first in Angola, Equatorial Guinea, Mongolia and Zimbabwe, which have presence in 111 countries, "being the Spanish fashion brand more international." Mango currently has 12,000 employees worldwide and has more than 2,600 outlets in 107 countries, figures increase over this year.

Mango now expects turnover for 2013 to come at 1,932 million euros and has advanced it will further invest 265 million euros in new store openings and reforms, logistics and information systems. This represents a strong increase compared to the 165 million euros invested in 2012. The group's goal for 2017 is to bill 4,970 million euros.