For the first time in its history, Spanish fashion chain Mango managed to exceed three billion euros in sales last year. A focus on the United States and a higher position in the market should make the new threshold of four billion achieavable by 2026 already.
Strategy: ‘Elevate’
Mango is back on track: after some meagre years, the Barcelona-based label is back on a growth path. In 2023, sales climbed 19 % to 3.1 billion euros, even more than the expected record sales of three billion. Net profit even doubled to 172.1 million euros. Gross margin was almost 60%.
The brand owed this growth to strong expansion in the US, as well as a new focus on premium fashion for a less price-sensitive audience. Positioning itself higher than Zara, the chain added more expensive items. Dresses in particular were (in the spring 2024 collection) 46 % more expensive than two years ago, Reuters reports.
500 stores added
CEO Toni Ruiz claims that not many items have not increased in price, but the price mix of the collection has been increased. This also differentiates the brand from Chinese newcomers Shein and Temu, and fits in with the label’s ‘4E’ strategy, whose pillars are “elevate”, “expand”, “earn” and “empower”.
Last year, Mango opened 130 shops, including twenty in the US. The brand wants to open thirty more shops there and make the US its third-largest market by 2026. Globally, Ruiz wants to open 500 new shops in the next two years, to reach 2,700 outlets. The goal is also to reach annual sales of four billion euros by then.
