Mango increases annual forecast on half-year sales jump
Spanish fashion brand Mango shared on Monday a revised forecast for the year, with profits now expected to exceed 2019 results.
The announcement comes as Mango achieves a turnover 21 percent above that of 2020, approaching pre-Covid levels. The growth was fuelled by e-commerce sales, which closed the first half of the year 37 percent above the same period last year and 85 percent above 2019.
The online channel accounted for 46 percent of total Mango turnover, four points higher than at the year end. The company is continuing to maintain its ambitious target to end the financial year with an online turnover of 1 billion euros.
During this period, the commercial margin also improved by 1.8 points compared to 2019, exceeding 58 percent. This increase is said to be due to improvements to collections, the proactive management of stock and fewer sales promotions.
Still, on the retail side, stores continued to be impacted by the Covid-19 pandemic. Physical stores were closed on average almost 50 days during the first half of this year, affecting key markets such as Germany, France, United Kingdom, Portugal and Turkey. There were equally considerable restrictions on opening and customer capacity in Spain — Mango’s principal market in terms of turnover.
“The results obtained so far this year makes us optimistic about the second half of the year, in which we expect a recovery in sales above the 2019 figures. We expect to return to profit this financial year," said Toni Ruiz, Mango CEO.
“The strategy implemented by the company in the last few years, together with the major decisions we took within a very difficult context like the one last year, are now bearing fruit. Mango is moving in the right direction and we are ready to face the future with more guarantees.”
Last month, the brand launched a 90,000 square-metre expansion project at its logistics centre in Lliçà d’Amunt, Barcelona, representing an investment of $42.4 million.
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