Mango once again has a year of record results that allows it to comfortably face its new expansion plan. Net profit rose to 172 million euros in 2023, double that of the previous year (82 million), while sales exceeded 3.1 billion euros (15%), as the company already anticipated a few months ago.
Without net debt and with a strong cash position, the fashion company owned by Isak Andic affirms that it will carry out growth at its own pace, with its own resources. “We do not plan to go public,” insisted Toni Ruiz, CEO of Mango, during the presentation of the results from the headquarters in Palau-solità (Vallès Occidental).
The firm has professionalized its structure in recent years and recently reformed its Board of Directors with new external members, among whom are Marc Puig, president and CEO of Puig, a company that is preparing its jump to the stock market. Mango also does not contemplate the entry of partners into its capital (Toni Ruiz became a shareholder of the company last December with a 5% stake).
The company has set a goal of opening 500 stores in three years, in addition to renovating 150 points of sale, which will be added to the current 2,700 establishments in 115 markets. This is an operation per business day until 2026. To undertake this increase in the commercial park, Mango will invest 600 million euros in the period. The sum will also be used to improve technological and logistical processes. The bulk of the openings will be concentrated in Spain, its main market, France, Italy, Germany, the United Kingdom, Poland, India, Canada and the United States. This last country is already in the top five markets by billing.
This commercial growth, together with an increase in the price mix with higher quality collections, should allow the group to exceed 4,000 million euros in three years (29% more than in 2023) and increase profits, explained Margarita Salvans, financial director and member of the Board of Directors. “We have a lot of room for organic growth and a lot of market share to gain,” Ruiz highlighted.
Mango has made a strong commitment to North America, where it already has 21 points of sale, with the flag ship on Fifth Avenue in New York as its flagship, inaugurated in May 2022. In 2024, it plans to open another 30 stores in the country, César de Vicente, global director of Retail, has advanced. With this increase, they expect that the United States will already be among the three main markets by 2026. 77% of turnover comes from international sales and ecommerce contributes a third of income.
By business lines, Man, Kids and Teen register growth of close to 20% in revenue, and represent 11% and 8% of total billing respectively. Woman remains the driving force behind Mango’s sales, with an advance of close to 15%.
The company celebrates its 40th anniversary in 2024, with the construction of its new campus underway (its inauguration is scheduled for next year). On this anniversary, Isak Andic will receive on March 18 the VIII Kingdom of Spain award for business career, an award granted by the Círculo de Empresarios, the Cercle d’Economia and the Círculo de Empresarios Basques.
