€4 billion in revenue and 500 additional stores

Mango‘s top executives showed their contentment at the presentation of the 2023 financial results, held on Monday, March 11, at the company’s headquarters in Palau-solità i Plegamans in Barcelona. It was a jubilant occasion, fueled by the attainment of record-breaking results in the history of the company founded by entrepreneur Isak Andic. Revenue reached €3.103 billion, with a net profit of €172.1 million and a new strategic plan for 2026 was unveiled. This reinvigorated roadmap outlines the priorities of the Catalan company, coinciding with its 40th anniversary.

“This year marks four decades since our first store opening on Paseo de Gracia, in Barcelona. We are experiencing a momentous period of exceptional record-breaking results, and 2023 has proven to be an exceptional year. Mango is growing 15% above the sector, and as of today, we have a profitable company, financially sound, and debt-free,” declared the company’s CEO, Toni Ruiz.

“At Mango, we don’t just sell clothes; we craft fashion.”

“The fusion of innovation and an entrepreneurial spirit make Mango a distinct company. We boast a unique value proposition grounded in creativity and design. And our clientele acknowledges it. We like to say that, at Mango, we don’t just sell clothes; we craft fashion,” exalted the executive leader of the Catalan company, emphasizing the company’s “global appeal” and current footprint spanning 2700 points of sale across 115 international markets. “We are in an era of prosperity,” reiterated the executive.

Looking ahead to the year 2026, Mango has devised a new strategic plan dubbed “4E”, symbolising its four strategic levers: “Elevate, Expand, Earn, and Empower.”

“It is a growth endeavour that excites us greatly. This plan will enable us to double our net profit over the next three years and increase revenue by €1 billion,” anticipated Toni Ruiz. Thus, the brand will surpass €4 billion in sales, while net profit will hover around €350 million.

Enhancing market positioning without raising prices

Meanwhile, the chief financial officer of Mango, Margarita Salvans, underscored: “In this fiscal period, we have doubled our net earnings compared to 2022, enhanced cash generation, and, with zero debt, we are fully equipped to confront the challenges outlined in our strategic plan.”

To propel the endeavor, the company aims to “fortify the distinctive value proposition of its product lines, amplifying brand value through aspirational allure, quality, and a bespoke style crafted in Barcelona, underscored by exemplary customer service and sustainability as a pivotal tenet.” This initiative necessitates maintaining a demand-tailored offering, complemented by capsule collections in the form of select collaborations or occasional premium releases.

In the words of the chief executive officer himself, the commitment to quality is unequivocal: “In an environment where many brands are losing their foothold, we believe having a well-defined value proposition is paramount.” Addressing inquiries regarding the potential impact of these aspirations on pricing, the executive asserted: “Mango is a company deeply acquainted with its clientele, for whom pricing holds significant importance. Elevating design and quality does not necessarily equate to price hikes.”

Expanding Mango’s retail network and workforce

Simultaneously, Mango intends to leverage a physical channel expansion plan, which currently accounts for 67% of its total revenue. “Physical retail has witnessed significant growth. Even during the times when the retail apocalypse was being discussed, we remained steadfast in our belief in physical retail. Presently, we see ample market share to capture. In Spain, we hold only a 3% share, indicating room for further growth,” reflected Toni Ruiz on a channel that already generates over €2 billion in revenue. Thus, over the next three years, Mango aims to launch a total of 500 international stores and refurbish 150 establishments. “This means that by 2026, we will open or reopen one store every working day,” said the CEO.

“The retail spaces serve as strategic omnichannel hubs for the company,” said César de Vicente, global director of retail, foreseeing that 75% of new store openings will be concentrated in “key markets” such as Spain, Italy, France, Germany, the United Kingdom, Poland, India, the United States, and Mexico. This year alone, the brand is poised to launch 30 establishments in the U.S., a market projected to be among the top three most significant for Mango in terms of turnover by 2026. Additionally, there are plans for approximately 20 new points of sale in France and a dozen in Italy, with a flagship store set to grace the streets of Rome. Within three years, the company will expand its footprint to encompass one million square meters of commercial space. Moreover, it is committed to fostering the growth of all its product lines in the upcoming years.

The third cornerstone of the plan will prioritize “ensuring sustainable growth and driving enhancements in sales across both the brick-and-mortar network and the online channel.” To realize this vision, as outlined by Margarita Salvans, Mango aims to prioritise technological advancements, data analytics, artificial intelligence, and operational excellence. “We aspire to position our profitability among the elite in the sector,” anticipated the company’s director, who, in 2023, channeled €187 million predominantly into store infrastructure, logistics, and technological innovations.

Lastly, Mango aims to empower and cultivate its workforce. “To realize our objectives, we necessitate the finest talent and organizational structures,” said Toni Ruiz, affirming a projected 30% increase in the workforce over the coming years. Presently, Mango boasts a staff of 15,500 individuals, with 80% being women. “The cornerstone of Mango’s success lies in its personnel. We strive to become the preeminent employer,” declared the executive.

Remaining true to its DNA

The inevitable question arises: is Mango considering alternative pathways for growth? However, the prospect of acquiring other labels, welcoming new stakeholders, or the perennially rumored Initial Public Offering (IPO) seems distant from the current reality of the Catalan enterprise. “I have been with the company for nine years, and the question about an IPO is the one I have been asked the most. It’s not a topic that is even on the table,” responded Toni Ruiz emphatically.

Mango places unequivocal trust in the evolution of its existing enterprise and in the boundless possibilities that lie ahead. “We take immense pride in the company we’ve become and believe we possess substantial potential for further growth,” concludes the CEO.