Mango expects to exceed 2019 profits in 2021
Mango has closed the first half of 2021 with 21% more sales than in the same period of 2020, prompting the retailer to revise its forecasts for this year – expecting profits to exceed those of pre-pandemic 2019.
The company closed the months of May and June with sales constantly above those of two years ago, and growth continues to be driven by the Mango online channel as ecommerce closed this half year 37% up on the same period last year and 85% above 2019.
The online channel accounts for 46% of total Mango turnover, four points higher than at the 31 December year end. The company is maintaining its ambitious target to end the financial year with an online turnover of €1bn.
Mango’s physical stores were closed on average almost 50 days during the first half of this year, especially affecting key markets such as the UK, Germany, France, Portugal and Turkey. There have also been considerable restrictions on opening and customer capacity in Spain, Mango's principal market in turnover terms.
Mango CEO, Toni Ruiz, said: “The results obtained so far this year make 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.
“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.”
During the first half of 2021 the commercial margin also improved by 1.8 points compared to 2019, exceeding 58%. A company statement says that the increase was due to improvements to the collection, the proactive management of stock and fewer sales promotions.
Additionally, the increase in profitability, together with the sound management of expenditure, has led to profit before tax improving by over €20m compared to the same period in 2019, and almost €100m compared to the same months in 2020.