Spanish fashion retailer Mango reported a EUR14m (US$14.8m) jump in EBITDA to EU436.6m leading to a 20.9% jump in bottom line to EUR81m. Sales increased 20% to EUR2.7bn.
Mango said during the period it doubled investments on 2021 to EUR107m, EUR60m of which were invested in technology, logistics and stores.
- Pre-tax profit was up 26.2% to EUR103.3m, representing the best figure in the last 10 years.
- Net profit was four-times pre-pandemic earnings at EUR81m.
- Gross profit reached EUR103.3m from EUR81.8m a year earlier.
- Woman remains the driver of group sales, accounting for 82% of total turnover.
- Mango closed 2022 with a turnover of EUR960m in its online business, representing 36% of total turnover.
- Plans to take online to over 20 new markets during the first half.
At a press conference announcing the results where Just Style was present, Cesar de Vicente, director of global stores, explained the group is looking further at increasing its presence in Canada and India in particular.
Tony Ruiz, CEO of Mango, said: “We’re very proud of 2022, not just because of the result but because we have overcome some challenges with great success by reacting as a company and overcoming them in a spectacular year.
“We’ve broken all investment records and focused on sustainability and our expansion. We have worked hard to transform the company, recovering the DNA and essence of the product. We have worked hard on developing our physical stores and online stores. Returning to normal from the pandemic has been key for us. We are now reaping the fruits of that hard work.”
For 2023 Mango says it will continue investing in its core pillars, which are sustainability, store and technology.
From a sourcing perspective, Ruiz told Just Style the company will continue to press forward with plans to diversify its sourcing strategy.
At present Mango has 2,400 factories that are tier 1, 2 and 3. Türkiye has the largest number of garment factories at 663, followed by China at 651, and India at 214.
Ruiz told Just Style at the sidelines of the event that though the company saw significant disruption during the pandemic for its China suppliers, this has to some degree recovered and China remains a very competitive sourcing market.
“For the apparel sector, China remains very competitive. Asia, per se, is one of the key pillars for production. The pandemic disruption did mean there was opportunity to bring more production to Turkey and closer.
“But China remains competitive. We have partnered with several partners there to overcome logistical disruptions.”