Spanish brand Mango aims to exceed pre-pandemic profits in 2021

Growth continues to be driven by the Mango online channel, which remains on an upward trajectory. E-commerce closed this half year 37 per cent up on the same period last year and 85 per cent above 2019. The online channel accounts for 46 per cent of total Mango turnover, four points higher than at the December 31 year end. The company is maintaining its ambitious target to end the financial year with an online turnover of €1 billion, Mango said in a media release.

For its part, the network of physical stores was closed on average almost 50 days during the first half of this year, especially affecting key markets for the multinational such as Germany, France, UK, Portugal and Turkey. There have also been considerable restrictions on opening and customer capacity in Spain, Mango's principal market in turnover terms.

“The results obtained so far this year makes us optimistic about the second half of the year, in which we expect a recovery in sales above the 2019 figures. We expect to return to profit this financial year,” said Toni Ruiz, Mango CEO.

During this period, the commercial margin also improved by 1.8 points compared to 2019, exceeding by 58 per cent. This increase is due to improvements to the collection, the proactive management of stock and fewer sales promotions. The increase in profitability, together with the sound management of expenditure, has led to profit before tax improving by over €20 million compared to the same period in 2019, and almost €100 million compared to the same months in 2020.

“The strategy implemented by the company in the last few years, together with the major decisions we took within a very difficult context like the one last year, are now bearing fruit. Mango is moving in the right direction and we are ready to face the future with more guarantees,” Ruiz added.

Fibre2Fashion News Desk (KD)