Mango sets goals for 2026: €4 billion in revenue and 500 additional stores

blog image

Mango sets goals for 2026: At the presentation of the 2023 financial results that took place on Monday, March 11, at the company’s headquarters in Palau-solità i Plegamans in Barcelona, key executives from Mango expressed their satisfaction. The achievement of company-historic record-breaking results was the driving force behind the joyous celebration, which was launched by entrepreneur Isak Andic. In addition to announcing a new strategy plan for 2026, revenue hit €3.103 billion and net profit was €172.1 million. On the occasion of its 40th anniversary, the Catalan corporation has released a refreshed road map outlining its objectives.

Forty years have passed since our first store opened on Barcelona’s Paseo de Gracia. We have entered a historic era of unprecedented record-breaking performance, and 2023 has been no exception. According to Mango’s CEO Toni Ruiz, the company is currently profitable, financially stable, and debt-free, and its growth rate is 15% higher than the sector average.

Mango sets goals for 2026

Margarita Salvans, CFO; Toni Ruiz, CEO of the company, and César de Vicente, retail director. – Mango

“At Mango, we don’t just sell clothes; we craft fashion.”

Mango stands apart from the competition thanks to its innovative and entrepreneurial drive. Our distinctive selling point is based on innovative thinking and beautiful design. And our customers notice. The executive leader of the Catalan firm said, “We like to say that, at Mango, we don’t just sell clothes; we craft fashion.” He went on to highlight the company’s “global appeal” and its presence in 115 international countries, where it currently has 2700 places of sale. “We are in an era of prosperity,” the executive reiterated.

“4E” stands for “Elevate, Expand, Earn, and Empower,” and it represents Mango’s new four-lever strategy plan for the years 2026 and beyond.

We are quite enthusiastic about this growth endeavor. Toni Ruiz predicted that the company’s net profit would quadruple and revenue would climb by €1 billion in the next three years thanks to this approach. Sales for the brand will therefore exceed €4 billion, with a net profit of almost €350 million.

Improving standing in the market without increasing pricing

 

Meanwhile, Margarita Salvans, Mango’s chief financial officer, stressed: “In this fiscal period, we have doubled our net earnings compared to 2022, enhanced cash generation, and, with zero debt, we are fully equipped to confront the challenges outlined in our strategic plan.”

In order to further the project, the business wants to “fortify the distinctive value proposition of its product lines, amplifying brand value through aspirational allure, quality, and a bespoke style crafted in Barcelona, underscored by exemplary customer service and sustainability as a pivotal tenet.” As part of this effort, it is necessary to keep a demand-tailored offering and supplement it with capsule collections that include collaborations or premium releases on occasion.

To quote the CEO: “In an environment where many brands are losing their foothold, we believe having a well-defined value proposition is paramount.” This statement demonstrates an unwavering dedication to quality. “Mango is a company deeply acquainted with its clientele, for whom pricing holds significant importance,” the executive said in response to questions about how these ambitions would affect prices. Investing in better design and quality doesn’t always mean spending more money.

Raising Mango’s store footprint and employee count

 

Mango plans to expand its physical channels at the same time, which bring in 67% of the company’s income. “There has been a considerable increase in the physical retail sector. Despite the prevalence of talk about the retail apocalypse, we never wavered in our support for brick-and-mortar stores. At the moment, there is a lot of market share to be had. “We have a 3% share in Spain, which means there’s potential for us to grow even more,” Toni Ruiz commented on a channel that brings in more than €2 billion in sales. Launching 500 new foreign stores and renovating 150 existing ones are thus Mango’s goals for the next three years. “This means that by 2026, we will open or reopen one store every working day,” said the chief executive officer.

According to César de Vicente, global director of retail, “the retail spaces serve as strategic omnichannel hubs for the company.” He predicts that “key markets” like Spain, Italy, France, Germany, the UK, Poland, India, the US, and Mexico will account for 75% of the new store openings. The United States is expected to rank among Mango’s three most important markets in terms of revenue by 2026, and the company is all set to open 30 stores there this year alone. An additional twenty places of sale are in the works in France and twelve in Italy, with a flagship store slated to be located in Rome. The business plans to increase its current presence by one million square meters of commercial space within three years. Additionally, it will work hard in the next years to promote the expansion of all of its product lines.

The third pillar of the strategy will be on “ensuring sustainable growth and driving enhancements in sales across both the brick-and-mortar network and the online channel.” Data analytics, artificial intelligence, technological innovations, and operational excellence will be Mango’s top priorities in order to achieve this vision put forward by Margarita Salvans. “We aspire to position our profitability among the elite in the sector,” the company’s director said, pouring €187 million into store infrastructure, logistics, and technical advancements in 2023.

Last but not least, Mango’s goal is to promote employee growth and development. Toni Ruiz made the announcement, “To realize our objectives, we necessitate the finest talent and organizational structures,” while confirming plans to hire 30% more people in the next years. At now, there are 15,500 people working at Mango, with 80% of them being women. The employees are Mango’s greatest asset. The CEO made a public proclamation about the company’s goal of being the leading employer.

Staying loyal to its roots

 

The question that must be asked is if Mango is looking at other avenues to expand. But for the time being, it seems like the Catalan firm will have to settle for the status quo rather than pursue acquisitions of other labels, new stakeholders, or the ever-rumored Initial Public Offering (IPO). In my nine years here, the subject of an initial public offering (IPO) has come up more often than any other. Toni Ruiz reacted with conviction that the subject is not even being discussed.

Mango has complete faith in the future of its current business and in the limitless opportunities it holds. “We are incredibly proud of the company we have become and we are confident in our ability to continue growing,” says the CEO in closing.


avatar
Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

Read more