Aug 22, 2017
Mango ends 2016 with a loss for the first time in its history
Aug 22, 2017
The fashion brand Mango lost 61 million euros in 2016 after obtaining net profits of 4 million euros the previous year. According to the company, this marks the first time in its history that Mango has reported a loss.
Mango attributed its entry into the red to an unfavorable exchange rate and the implementation of a new business plan for the company.
With regards to sales, Mango ended 2016 with 2.260 million euros in sales compared to 2.327 million in 2015, representing a 2.9 percent drop. The Spanish company has nonetheless stated that an increase in sales in the past year “suggests that 2017 will see a return to profits.”
The company also touted investments made in 2016, a total of 138 million euros primarily for new store openings, an increased emphasis on the fast-fashion model, and the opening of a new logistics center in Barcelona.
The brand’s earnings before tax reached 77 million euros compared to 170 million in 2015, primarily as a result of sales failing to meet expectations in the first quarter of 2016.
Despite those setbacks, the company has stated that 2017 will be a stronger year and expects its earnings before tax to surpass 150 million euros.
International sales made up 79 percent of Mango’s profits in 2016, while sales in the Spanish market made up 21 percent. Profits for its “Man,” “Kids,” and “Violeta” lines have grown from 14.7 percent to 17.6 percent of total sales.
First semester of 2017
Figures from January to June of 2017 surpassed the company’s goals, with sales growing 45 million euros compared to the previous year and Mango’s earnings before taxes reaching more than 30 million.
Mango’s executive vice president Daniel López indicated that the company is “optimistic with respect to 2017” and underlined that recent changes in structure will help Mango remain one of the largest multi-national companies in the fashion sector.
Online sales and stores
Online sales of products increased in 2016 in the group as a whole, with a 25.6 percent growth to 294 million euros.
Mango ended the 2016 period with 191 megastores, 24 of which were opened in the past year, and a total of 2,217 stores across 110 countries. Its total global square footage adds up to 798,000 square meters.
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