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Mango expects full-year profit to be ahead of 2019 levels

By Huw Hughes

Jul. 26, 2021

Business

Image: Mango

Spanish fashion retailer Mango says it expects full-year profit to be ahead of 2019 levels following a strong performance in the first half of the year.

The company said it has already achieved 21 percent higher turnover than it did in 2020 and is approaching 2019 levels. It said it closed the months of May and June with sales “constantly above those of two years ago”.

That growth continued to be driven by Mango’s online channel, which closed the first half of the year 37 percent up on the same period last year and 85 percent above 2019.

The online channel accounts for 46 percent of Mango’s total turnover, four points higher than at the 31 December year-end.

The company said it still stands by its earlier-announced target to achieve an online turnover of 1 billion euros by the end of the year.

On a less positive note, the company’s network of physical stores was closed on average for almost 50 days during the first half of this year, with key markets affected, including the UK, Germany, France, Portugal and Turkey.

There have also been “considerable restrictions” on opening and customer capacity in Mango’s home market of Spain.

“The results obtained so far this year makes 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,” said Mango CEO Toni Ruiz in a statement.

The company said its commercial margin also improved by 1.8 points compared to 2019, exceeding 58 percent, citing improvements to the collection, the proactive management of stock and fewer sales promotions.

“The increase in profitability, together with the sound management of expenditure, has led to profit before tax improving by over 20 million euros compared to the same period in 2019, and almost 100 million euros compared to the same months in 2020,” the company said.