Mango sales soar in first half of 2022, Europe, US, India are key markets
Mango has reported its first-half 2022 sales and said turnover was up 24.8% at €1.214 billion. It also beat the sales figure for the first half of 2019, the last H1 period before the pandemic.
The company added that its first six months saw higher gross operating profit compared to a year ago as it enjoyed a strong performance in key markets. It didn’t specify monetary figures here.
It all means the company has plenty of cash available and good reason to increase its investment rate, which is expected to be above €124 million for the year as a whole. That's three times what it invested in 2021 with the company focusing on technology, logistics, facilities and stores.
CEO Tony Ruiz said the H1 performance "is another sign of the new stage of growth which Mango is in. Our customers appreciate and value our product and we have accelerated our expansion and made our operations more efficient".
As far as the sales growth is concerned, Mango said it capitalised on the return to stores from April and the return of social events to drive turnover upwards.
Although it was affected by the Russia-Ukraine war and its withdrawal from Russia, its presence in more than 110 markets around the world was a strength for the firm and it said that business was positive in the main regions in which it operates.
Mango cited strength in countries such as Spain, France, the US, UK, Italy and India and it has been focusing investments in these countries. For instance, it has just renovated its Haussmann flagship store in Paris, and plans to open 300 points of sale by 2025 in Spain and France. In the UK, it will be opening in the new Battersea Power Station shopping centre in London, and in Italy, it has “an ambitious expansion plan, especially in the south of the country”.
In the US, it opened a Fifth Avenue flagship in New York in May and is planning a network of 40 stores in the country by 2024. In India, meanwhile, it has advanced its development with partner Myntra to 50 points of sale, with an estimated 15 to 20 more openings due in the second half.
Activity such as this means that by the end of the first half it had 2,508 points of sale worldwide with 61 net openings since December. It expects to have more than 2,600 stores by the end of this calendar year.
But it's not only focused on physical stores and said it continued to demonstrate strength online, although the comparisons are very tough given that its online operations boomed during parts of 2021 when physical shops were closed. That meant its e-sales were down 3.9% in the first six months of this year, although the increases in physical stores more than made up for this.
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