PARIS — Barcelona-based retailer Mango crossed 3 billion euros in sales in 2023 and the retailer has outlined an ambitious growth plan with a target of 4 billion euros in sales by 2026.
The company’s turnover topped 3.1 billion euros in 2023, up 20 percent at constant exchange. That resulted in a net profit of 172.1 million euros. Much of the growth was fueled by its rapid expansion, with net 130 new stores opened in the last year.
The sales figure was a record for the company and just above the guidance issued in December. In 2022 Mango’s sales were 2.68 billion euros.
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More than 1 billion euros of the 3.1 billion euros in revenue were from online sales, or about 33 percent, as the company has invested in its omnichannel strategy with a loyalty program, an in-house app and using AI to boost data management.
The bump in sales led to a doubling of the company’s net profit to 172 million euros from 81 million in 2022.
Women’s lines remain the bulk of the business, with a focus on party and formalwear, but men’s is growing, now about 11 percent of sales, while kids and teen accounts for about 8 percent. Combined, sales were up 20 percent in those categories.
Mango is also pushing forward with its aggressive expansion plan, named 4E for “Elevate, Expand, Earn and Empower.” That roadmap will see it add 500 stores to its existing 2,700 worldwide by the end of 2026.
Thirty of those stores will be in the U.S. With the expansion, Mango has 4 billion euros of turnover by 2026 as its goal.
The plans were revealed by chief executive officer Toni Ruiz as part of the retailer’s new strategic plan, which also aims to elevate the brand perception against that of rival Zara.
“In a very competitive environment, Mango has managed to significantly increase its sales, achieving the best results in the company’s history, with a turnover above 3 billion euros for the first time,” Ruiz said. “The work carried out in recent years is bearing fruit: We are growing above the market, we are profitable and we are financially healthy.”
Expansion will boost the brand’s presence in its core markets of Spain, France, Italy and Germany, as well as in Poland on the continent. It will also target the U.K., India, Canada and the U.S.
The U.S. market has become the brand’s fifth-largest since opening a flagship on Fifth Avenue in May 2022, and its subsequent expansion concentrated in Sunbelt states including Texas, Georgia and California. With the continued expansion plan, Mango says the U.S. will be in its top three markets by 2026.
Its home country of Spain still remains its core market.
The privately held company formalized the addition of new board members, including Marc Puig, president and CEO of the beauty and fashion group Puig, as well as Ruiz taking a 5 percent stake in the company.