Mango’s U.S. expansion will push sales past $3 billion in 2023, Marketing & Advertising News, ET BrandEquity

Spanish fashion retailer Mango on Monday reported record sales of 3.1 billion euros ($3.39 billion) in 2023, matching domestic rival Zara’s strong expansion in the United States. , exceeded expectations.

The Barcelona-based brand saw sales rise 19% last year, exceeding its expected 3 billion euros, thanks to a focus on party wear and fashion items aimed at luxury shoppers who are less sensitive to price hikes. He said he exceeded that.

This has helped it fend off pressure from the rapid growth and lower prices of online players such as China-based Shein.

Mango positions itself as a luxury retailer, charging higher prices for some party items than Inditex’s Zara and Sweden’s H&M, according to retail intelligence firm Edited.

According to EDITED, the biggest price increases were for dresses, with average inventory prices for spring 2024 collections in markets like the U.S. rising 46% compared to two years ago.

Mango CEO Toni Lewis said the company has reduced the number of items it sells at discounted prices, saying, “While prices for many items have not increased, the price structure of our collection has increased.” added.

Mango’s net profit rose to 172.1 million euros from 81 million euros in 2022, Lewis said at a press conference. Mango said gross profit margins in 2023 will be close to 60% and net debt is zero.

The family-owned fashion brand follows in the footsteps of Inditex, the world’s largest publicly traded fast fashion group, which also operates in the United States.

new store in usa

Lewis said the company plans to open 500 new stores globally over the next two years, reaching 2,700 stores, and 30 more in the U.S. by 2026, making it the third largest market. He said he plans to do so.

The company invested 187 million euros last year, mainly in new stores and distribution centers.

About 20 of the 130 Mango stores opened last year were in the U.S., with the company beginning to expand by opening a flagship store in New York in 2022.

Mr. Lewis said that as a result of the expansion, the company aims to reach total annual sales of 4 billion euros and double net profit by 2026.

He said Mango had no plans to list on the stock market and did not need new investors to raise money for its expansion plans, which would require an investment of 600 million euros by 2026.

The company is undergoing internal restructuring and has installed a new board of directors led by founder Isak Andic. Mr. Lewis acquired a 5% stake in the company last year.