BARCELONA – Spanish fashion retailer Mango reported on March 11 record sales of €3.1 billion (S$4.5 billion) in 2023, beating its forecast after matching domestic rival Zara’s strong expansion in the US.

The Barcelona-based brand said sales jumped 19 per cent in 2023 to exceed its forecast of €3 billion through a focus on party wear and fashion pieces for upmarket shoppers who are less sensitive to higher prices.

This helped it fend off pressure from the rapid growth and bargain prices of online players such as China-based Shein.

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 per cent for the 2024 spring collection versus two years ago in markets such as the United States, according to Edited.

“For many items, prices have not increased, but the price mix of our collection has,” said Mango chief executive Toni Ruiz, adding that the company has reduced the number of pieces sold at a discount.

Mango’s net profit rose to €172.1 million, from €81 million in 2022, Mr Ruiz said at a press conference.

Gross margin was near 60 per cent in 2023 and the company has zero net debt, Mango said.

The family-owned fashion brand is following in the footsteps of the world’s largest listed fast-fashion group Inditex, which is also expanding in the US.

Mr Ruiz said the company plans to open 30 more stores in the US and make that market its third largest by 2026, as part of a plan to open 500 new shops worldwide in the next two years to reach 2,700 stores.

The company invested €187 million in 2023, mainly in new stores and logistics centres.

Around 20 of the 130 stores Mango opened in 2023 were in the US, where it began an expansion in 2022 with a flagship store in New York.

It aims to reach total annual sales of €4 billion and double its net profit by 2026 as a result of the expansion, Mr Ruiz said.

He said Mango has no plans to list on the stock market and does not need new investors to raise resources for an expansion plan that will require €600 million of investment by 2026.

The company has been carrying out an internal reorganisation, creating a new board of directors led by founder Isak Andic. Mr Ruiz acquired a 5 per cent stake in the company in 2023. REUTERS