Mango profits drop despite online sales enduring Covid-19 storm

Mango Toni Ruiz trading update
Mango aims to post an online turnover of €1 billion (£860 million) this year and has launched new projects to achieve this
// Mango records an online sales rise of 36% year on year to £656m during 2020
// Turnover of physical stores fell by 43% after store closures affected trading
// At the close of 2020, the company had 43 more stores than in 2019

Mango has seen its online sales rise 36 per cent year on year to reach €766 million (£656 million), with online revenue now accounting for 42 per cent of total turnover.

The fashion retailer said that for 2020, the turnover of physical stores fell by 43 per cent after store closures affected trading.

EBITDA narrowed by 0.5 per cent to €193 million (£165 million) after the application of the IFRS 16 reporting standard, while the business made a gross loss of €110 million (£94 million), compared to a gross profit of €41 million (£35 million) the year before.


READ MORE: Mango online turnover jumps 50% thanks to Covid-19 lockdown


Net bank debt fell by 20 per cent to €156 million (£134 million) during the period.

Mango said it is maintaining its commitment to the physical channel because it sees physical stores “as one of the most important touch points with the brand within the customer journey”.

At the close of 2020, the company had 43 more stores than in 2019, with a total of 2221 stores in over 110 countries.

Mango aims to post an online turnover of €1 billion (£860 million) this year and has launched new projects to achieve this – “hyper-personalisation” of the browsing and shopping experience on all digital devices; the use of new technologies based on artificial intelligence to improve after-sales service; and inclusion of franchises in omnichannel retailing initiatives.

With the gradual reopening of its store network, Mango experienced a “recovery period,” so that in October its sales “were only six per cent lower than those of the previous year”.

“We have experienced an absolutely exceptional and unpredictable year for everybody,” Mango chief executive Toni Ruiz said.

“Thanks to the major commitment Mango has made to its online channel over the last 20 years, we have succeeded in it representing 42 per cent of our total turnover in 2020, which is an extraordinary figure in our sector and a huge competitive advantage for our company.”

Last year, Mango said its online turnover jumped by 50 per cent from March 15 to June 1 as customers chose to shop from home.

The Spanish retailer registered over 140 million visits to its ecommerce platforms during the period.

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