Little by little, Mango is emerging from the health crisis and approaching its pre-pandemic figures. the fashion group closed the first half of 2021 with revenue of 1,214 millions of euros24.8% more compared to the same period in 2021. As indicated by the company in a press release, the company maintains the pace of last year and has already exceeded the sales of the first half of 2019.
Although the fashion group owned by Isak Andic did not provide data, ensures that the first semester ended with gross margin (ebitda) up compared to the first half of 2021. Company sources explain that they hope to reach a positive gross result by the end of the year and close 2022 without losses.
In this sense, and while waiting for the evolution of the second half, the company’s forecast focuses on overtaking its pre-pandemic sales. In 2019 it reached its record figure of 2,374 million euros, an amount which fell to 1,641 million in 2020 due to covid and managed to rise again in 2021 to achieve a turnover of 2,234 million.
In a press release, the CEO of Mango, Toni Ruiz, attributes these good figures to “the new stage of growth in which Mango finds itself”. Likewise, the fashion company claims that sales keep pace with recovery to normal, which has multiplied social events and, with them, the need to buy clothes for special occasions. However, this return to routine also caused a slight drop of 3.9% in sales on the online channel. At the beginning of 2021, some trade restrictions were still in place to prevent covid infections in some countries, which justifies this drop.
On the other hand, the group recognizes that the period was conditioned by the war in Ukraine. After the outbreak of the conflict, Mango has abandoned its direct operations in Russiafor which it has made a provision of 20 million euros.
Investments for 120 million euros in 2022
In view of the good results, the Barcelona group argues that will triple its investment in 2021 with an overrun forecast of 120 million euros throughout 2022. This amount will be allocated to “technology, logistics, facilities and stores”.
In fact, during these months, Mango has completed the expansion works of the logistics plant located in Lliçà d’Amunt, in the province of Barcelona. Now I know prepares to install intralogistics systems, as the plant will channel all its operations online. The whole project requires an overall investment of 88 million and is expected to enter service in 2023.
Riuz’s company opened 61 new stores since last December, reaching the current network of 2,508 points of sale around the world. The company is present in more than 110 countries, including Spain, France and the United Kingdom, where the company plans new openings in central locations. He also proposes “an ambitious expansion plan” in Italy.