Mango toasts ‘extraordinary’ year as sales hit record high
It seems Mango’s CEO knew exactly what he was talking about when he anticipated positive results for 2019 at the launch of a high-tech logistics centre in Barcelona last year. On Thursday, the Spanish brand confirmed his optimism with the release of its latest numbers, saying revenues reached an all-time high in 2019.
Sales jumped by €141 million to €2.37 billion ($2.62bn), growing by 6.3% year-on-year. This was €47 million higher than the previous record in 2015, when sales reached €2.32 billion. Revenues dropped in the two years that followed, before rising again in 2018.
The good sales performance helped EBITDA increase by 43.7% to €194 million ($214m), while gross profit reached €41 million.
“2019 was an extremely satisfactory year, in which we achieved the highest sales figure in our history and managed the greatest increase in profits in one year,” said Toni Ruiz, who was appointed CEO of the company at the beginning of March. “These excellent numbers are the result of all the hard work of all of us who are part of Mango, and allow us to continue building the company we want to be in the long term.”
Net debt dropped for the third consecutive year, from €415 million to €184 million. “We have the best financial position we have had in many years. Today we are able to repay all our debts with what the company generates in one year. Our goal is to continue reducing debt, but without giving up projects that increase our profitability,” Toni Ruiz commented.
Online sales now account for nearly 24% of total sales
International markets represented 77% of sales at Mango in 2019, but Spain continues to be the largest individual market for the brand. In terms of categories, the womenswear collection dominates, generating 82% of sales, while combined sales of Man, Violeta and Kids account for the remaining 18%.
Additionally, online sales beat expectations by growing 26.7% to €564 million during the year. E-commerce accounts for 23.7% of the company’s global revenues, and web visits reached more than 600 million in 2019. Finally, Mango’s total selling space remained largely the same despite a programme of store openings, closures and refurbishments. By the end of the financial year, Mango had 2,188 stores worldwide and 803,000 sq mts of selling space, down 1% on the previous year.
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