MANGO SALES GREW BY 15.3% IN 2015, DRIVEN BY THE OPENING OF ‘MEGASTORES’
- The company exceeded its forecasts with a consolidated turnover of 2.327 billion euros
- The chain consolidates its position with the speed of the new retail model and already has 164 Megastores, 63 of which opened in 2015
- Selling space increased by more than 100,000 m2 during the last financial year, reaching a total of 804.500 m2
- Online sales grew by 27% compared to 2014 and now account for 10.7% of total sales
- The group created 838 direct new jobs, increasing its workforce to 16,625 employees
- The new Lliçà d’Amunt Logistics Centre will go into operation in 2016
- Currency fluctuations and amortisation linked to the investment of recent years penalises Group profits, which totalled 4 million euros, by 100 million euros
Barcelona, 27 May 2016 - MANGO MNG Holding closed the 2015 financial year with sales of 2.327 billion euros, representing a 15.3% increase on 2014 when its sales totalled 2.017 billion euros and grew by 9.3%. This increase exceeded initial forecasts, at the time established at 13%. The key to this growth in sales has been the progressive consolidation of the commercial transformation project in which the Group has invested 1.2 billion euros in the last three years and which has enable it to increase its total selling space by more than 300,000 m2 with the opening of 164 megastores.
81% of MANGO turnover corresponds to international activity, and the remaining 19% to the domestic market. In Spain, which proportionally has the highest number of ‘megastores’ (25), turnover grew by 20.1%, endorsing the commitment to this new store format.
MANGO continues its national and international expansion with the megastore concept created in 2013. These stores offer all or most of the group lines (Woman, Man and Kids), improving both the offer and the customer shopping experience. In 2015 63 megastores were opened, bringing the total to 164 by the year end. The new store projects include the flagship stores opened in Corso Vittorio Emanuele in Milan, on the Ramblas in Barcelona and in Henry Street in Dublin. 45 new store openings are planned in 2016. At the close of 2015, MANGO had 2,730 stores in 109 countries with total selling space of 804,500 m2, approximately100,000 m2 more than the previous year.
The turnover of online sales continues to increase its share of total group turnover, and at the close of the year, these transactions accounted for 10.7% of total sales. Specifically, sales via this channel totalled 234 million euros, 27% more than the previous year. MANGO sells in 83 countries via its online platform. Last year, online expansion focused on South America, Asia and Africa, in order to complete the product offer in countries where the brand is already established through physical stores. The latest markets it has entered are Egypt and South Africa, meaning that MANGO is now present in all five continents.
During 2015, MANGO has continued its commitment to an omnichannel strategy, based on placing the customer at the centre of all its activities. An example of this is that last year, nearly 600,000 collected their internet orders from physical stores, or that more than 540,000 orders were placed in physical stores via iPad.
To meet the needs of all its sales channels, the company has completed its new Logistics Centre in Lliçà d’Amunt (Barcelona), which is now operative and at full capacity will employ 400 persons. In 2015, the Group created 838 new jobs worldwide. 35% of these were created in Spain. MANGO currently has a workforce of 16,625 employees worldwide.
The growth in sales was accompanied by an increase in profitability. The impact of certain currencies, especially the dollar, and the increased amortisation through investments has affected the profits of the Group, which made a profit of 4 million euros, compared to 107 the previous year. In specific terms, both factors made an impact of 100 million euros for the company. The fluctuations in several currencies made an impact of 70 million euros, while the amortisations accounted for an additional 30 million euros.
The EBITDA of MANGO MNG Holding was 170 million euros, compared to the total of 223 million the previous year. With regard to amortisations, the company has made an investment effort which, as well as transforming the sales network, includes the start-up of a new logistics centre in Lliçà d’Amunt.
“We have transformed our business model to become much more attractive to our customers and gain their confidence. The commitment to growth to the detriment of short-term profit was planned and will result in a return to greater profitability in the coming years. We have the best team to execute it”, says the company’s Vice-Chairman, Daniel López.
MANGO was founded in 1984 and is today one of the leading fashion groups in the world. Based in its city of origin, Barcelona, at the close of 2015 the company had an extensive network of 2,730 stores in 109 countries, 1,567 of which are franchises. From its “El Hangar” Design Centre in Palau-solità it designs 18,000 garments and accessories to wear the season’s trends at affordable prices. The company, which owns the Mango Woman, Man, Kids and Violeta lines, closed 2015 with sales of 2.327 billion euros, representing a 15% increase on 2014.