Mango bets on an upturn in clothing sales at the end of the year

Mango invited 350 people to a dinner at Lycée Henri-IV in Paris on Thursday 3 November. Under the 18th century domee century of this renowned school, the Spanish clothing brand celebrated its latest collection of fishnet and rhinestone dresses, silver lamé or leopard print sheath dresses designed with the French Instagrammer Camille Charrière. Toni Ruiz, its CEO since 2020, made the trip for this unprecedented operation, which must serve a bet: the “ revival of clothing sales at the end of the year ».

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Although the market has been hit by a severe crisis, and despite inflation weighing on clothing sales, the manager estimates that in 2022, after two years of health constraints during the 2020 and 2021 holidays, families will gather for Christmas. According to him, men and children will then want to put on their thirty-one for Christmas Eve. However, in summer as in winter, Mango is “reputed” for his so-called “ceremonial” festive outfits, recalls Mr. Ruiz.

The company created in 1984 by two brothers, Isak and Nahman Andic, in Barcelona, ​​and 100% owned by the first, is flourishing, observes this former financial director, called in 2015 by its founders to turn it around. Just like its compatriot Inditex, world number one in clothing, at the head of Zara, Mango displays insolent results. Its sales increased by 25% over the first six months of 2022.

Its 2022 financial year should end with similar performances, to reach “a historic record”, despite the closure of its Russian subsidiary (120 stores), which contributed 8% to its operating profit. The brand, whose activity amounted to 2.3 billion euros in 2019, hopes to maintain its net profitability at 67 million euros in 2022. Even if it means returning to Russia, by transferring its branches to its local franchisees , already at the head of 65 points of sale.

Renovation of the store network

The sector is facing “a rise in the dollar, which makes supplies more expensive”, to a surge in production costs under the pressure of energy costs, to soaring rents indexed to inflation, to increases in the prices of raw materials (including cotton) and personnel costs, agrees Toni Ruiz. But, in Barcelona, ​​where 500 people design its collections for men, women and children, the company has however decided to triple its investments compared to 2021. They amount to 120 million euros in 2022.

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