Apr 2, 2014
Mango sales and profit up 9% for 2013
Apr 2, 2014
If Mango's growth is below the 20% it posted in 2012, the retailer is still showing more strong gains in turnover. Sales at the Spanish retailer increased 9% to reach 1.846 billion euros at the close of fiscal year 2013.
The company's EBITDA clocked in at 229.9 million euros and net profits amounted to 120.5 million euros, also representing a 9% rise.
In 2013 the Spanish market accounted for 17% of Mango's total sales (1% more than in 2012). Mango is now present in 105 countries and has opened more than one hundred new stores in 2013, comprising 50,000 square meters of additional retail space for a total of 600,000 square meters.
The company is also planning bigger expansion projects for 2014, having already announced the development of 123,000 square meters of new retail space.
Most of the new store projects are in Europe, as Mango intends to consolidate its foothold on the Old Continent with its megastore concept. These 800 to 3000 square meter stores give the retailer enough space to present its main womenswear collection together with new lines launched the past few seasons: HE (menswear), Touch (accessories), Violeta (plus sizes), Kids and Sport & Intimates. The men’s line was also the strongest in sales after womenswear, bringing in 130 million euros.
Mango also intends to push sales in kidswear through new points of sales (mostly corners), opening some 250 for Mango Kids by the end of 2014, while Sport & Intimates will add another 30 for a total of 125. The Violeta line has been launched more independently through monobrand stores and is forecasting 50 million euros in sales for its first fiscal year 2014.
Moreover, the retailer's e-commerce store continues to grow at top speed. Online sales increased from 70 to 124 million euros for fiscal year 2013, an gain of 77%. This segment now represents 6.7% of Mango's total sales, a share that will obviously keep growing. The online store will also open new markets this year, such as Australia and several countries in South America and Central America that have not yet been announced.
Mango's rival the Inditex Group has announced it will increase its investments in 2014 from the initially planned 265 euros up to 300 million euros. Besides the new stores mentioned above, Mango plans to support its growth by renovating existing retail space, expanding office space and warehouses both at its logistics center and headquarters. As part of this plan, Mango also announced an increase in staff from 13,000 to 15,000 employees worldwide by the end of 2014.
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