PARIS — Spanish fast-fashion retailer Mango on Thursday reported sales at a historic high, with net profit up 20.9 percent year-over-year to 81.1 million euros.
Total turnover for the company was 2.68 billion euros in the 2022 fiscal year, up 20.3 percent from 2.23 billion euros in 2021. That figure also represented an improvement over the retailer’s pre-pandemic numbers, with turnover up 13.2 percent compared to 2019.
“We have closed what is probably one of Mango’s best years, overcoming complex market circumstances and committing to strong investments with a future vision and ambition,” said chief executive officer Toni Ruiz.
Ruiz noted the company had been hit by the closure of stores in Russia, as well as the strong dollar impacting its euro bottom line. Shuttering its operations in Russia resulted in a 20 million euro write-down, pushing gross profit to 56.9 percent, dipping slightly from 58.2 percent in 2021.
The Barcelona-based brand’s home country of Spain was its biggest market, accounting for 22 percent of total turnover. Europe remains its largest region, with the company reporting France, Italy and the U.K. as its key markets, though it is pushing into the U.S. with plans to open 40 stores by 2024.
The fast-fashion brand continues to count womenswear as the key driver of group sales, amounting to 82 percent of the total business. The company reported that menswear sales grew by 30 percent year-over-year to 300 million euros, while the subdivisions of Kids, including its fledgling Teen business, grew its turnover by 18 percent to 200 million euros.
Home, launched in 2021, is still a small part of the company’s turnover, at 5 million euros.
Mango continued to ramp up store openings, adding 119 doors in 2022, for a total of 2,566 stores across 115 countries. The company expanded into Cameroon and Morocco, opened a new flagship in New York and refurbished its Paris outpost.
The group signed major agreements with Fox to expand in Canada, and Myntra for its continued push into India as franchise models.
The company said the new openings and continued investment in existing stores demonstrates it is “maintaining its commitment to the physical store as a privileged point of contact with its customers.”
However, online sales continued to accelerate, at 36 percent of total company turnover at 960 million euros across 90 markets. E-commerce will launch in more than 20 new markets in the first half of 2023, particularly throughout Africa. It has also signed an agreement with local partner Dafiti to launch Mango online in Brazil.
The company doubled its investment rate, spending 107 million euros on improvements in tech and logistics.
A bulk of that spend is on its new global distribution logistics center outside of Barcelona, which will manage its entire physical and online operations set to open in the first half of 2023. The facility will handle 85,000 garment an hour.
The company will also open a 42 million euro headquarters in the second half of 2023, which will house 2,200 employees.
Debt increased to 82 million euros, up from 8 million euros 2021, as a result of the global store expansion and building the new facilities.
The company increased its global workforce by 10.3 percent in 2022, for a total of 14,082 employees worldwide.