Mango’s U.S. expansion helps sales top $3.4 billion in 2023

By Thomson Reuters Mar 11, 2024 | 6:16 AM

BARCELONA (Reuters) -Fashion retailer Mango said on Monday its sales rose 19% to a record 3.1 billion euros ($3.39 billion) in 2023, after matching Spanish rival Zara’s strong expansion in the United States.

Barcelona-based Mango said it exceeded its forecast of surpassing 3 billion euros in sales by offering fashion trends faster than competitors thanks to having suppliers near to its main logistics centres in Spain and factories in Asia.

Its in-house design has a firm focus on party wear and fashion pieces for upmarket shoppers who are less sensitive to higher prices in a global fast-fashion industry where the rapid growth of newer online players such as China-based Shein is putting pressure on competitors with bargain prices.

Mango has positioned itself more as a premium retailer and has higher prices than Inditex-owned Zara and Sweden’s H&M in some party pieces, retail intelligence company EDITED said.

The biggest price rises are in dresses, where average in-stock prices grew 46% for the 2024 spring collection versus two years ago in markets such as the U.S., according to EDITED.

Mango’s online sales account for a third of its total revenue.

Its net profit rose to 172.1 million euros, from 81 million euros in 2022, CEO Toni Ruiz said at a press conference.

Mango is following in the footsteps of the world’s largest listed fast-fashion group Inditex, which is also expanding in the U.S.

The smaller Spanish group reported double-digit sales growth over the Christmas period in the U.S., which has become one of its top five markets.

($1 = 0.9146 euros)

(Reporting by Corina Pons; writing by Charlie Devereux; editing by Alexander Smith)