Sales increased by 141 million euros, 6.3% more than 2018, and are the highest sales achieved in the company's history.
EBITDA rose by 43.7%, from 135 to 194 million euros
For the third year running, Mango reduced its net financial debt, which fell to 184 million euros
Online sales grow by 26.7%, totalling 564 million euros, and now represent 23.7% of total group turnover
The total annual investment was 58 million euros, much of which was allocated to accelerating the digital transformation of the company
Mango moves forward in its sustainability plan: it signs the Fashion Pact and joins the Sustainable Apparel Coalition
More than 3 million active customers in the new loyalty club since its launch in Spain and France
Mango has closed the 2019 financial year with sales of 2.374 million euros, the highest in the company's history. Income has risen by 141 million euros, representing an increase of 6.3% compared to the turnover of 2.233 billion euros posted in 2018, and exceeds the 2015 turnover by 47 million euros, which until now were the highest sales figures ever recorded.
This increase in sales is accompanied by a significant improvement in profitability. Mango’s EBITDA has grown by 43.7% from 135 to 194 million euros, with accumulated growth in the last three years close to 120 million euros. The company made a gross profit of 41 million euros.
According to Mango’s Chief Executive Officer, Toni Ruiz: “2019 has been an extraordinarily satisfactory year, in which we achieved the highest sales figure in our history and we have obtained the largest increase in profit in a single financial year. These excellent figures are the result of the effort and the great work of all of us who form part of Mango and will allow us to continue to build the company we want to be in the future”.
At the same time, Mango has continued to reduce its bank debt. In just two years, it has managed to cut its net financial debt from 415 to 184 million euros. Specifically, the debt was reduced by 131 million euros last year. “Our financial situation is better than it has been for many years. Today we are able to repay all the debt the company generates in a single year. Our goal is to continue reducing it, but without renouncing projects that will increase our profitability”, Ruiz points out.
With regard to turnover by geographical regions, the international activity of the group remained at 77% of total turnover and the Spanish market, its main sales market, at 23%. By business lines, Man, Kids and Violeta accounted for 18% of sales. Of particular note was the evolution of the men's collection, which grew by more than 20% in 2019 and achieved a turnover in excess of 200 million euros.
Online sales increase by 26.7% while sales in physical stores also rise
With regard to online sales, turnover rose by 26.7%, to 564 million euros, which represents an increase of 119 million euros, above the target set for the year. In relative terms, online sales accounted for 23.7% of total company turnover. In the coming financial years, Mango expects to obtain growth rates in excess of 20%.
To attend to online sales in a quicker and more efficient manner, the group currently has ten logistics warehouses distributed throughout the world. Furthermore, the enlargement of the new logistics centre in Lliçà (Barcelona), announced last November, will accompany the growth in e-commerce.
In 2019, the Mango webpage received more than 600 million visits, 80% of which were via mobile devices. The company has continued to invest in improving the browser experience and user-friendliness of platforms (desktop, Apps and mobile). It has also made significant advances in improving and maximising the profitability of digital marketing, by personalising the browsing and shopping experience through the integration of more than 20 million customers available in CRM, increasing the relevance of communications with customers and at the same time obtaining greater efficiencies in investments.
For their part, sales in Mango’s physical stores also performed outstandingly during 2019, achieving comparable growth of 5.5%, a very positive result given the evolution of the market. In addition, the consolidated like-for-like physical and online sales achieved double-digit growth in the company’s main markets.
Throughout 2019, Mango has continued to reorganise its stores network in order to adapt it to new requirements, although the amount of selling space has remained stable. In absolute terms, the company closed the financial year with 2,188 stores, 5 more than the previous year and with a selling space of 803,000 m2, 1% less than in 2018.
A major commitment to sustainability
Mango is accelerating its commitment towards more sustainable fashion, which is one of the strategic goals of the company. In 2019, it joined the Fashion Pact, a global coalition made up of 300 companies and brands, which aims to promote environmental sustainability in the textile and fashion sectors. And just a few weeks ago, Mango announced that it has joined the Sustainable Apparel Coalition, a leading organisation in the textile sector which encourages good practices in the supply chain and measures environmental impact.
Similarly, Mango has continued to implement new sustainability initiatives, such as increasing the proportion of sustainable fibres in its collections, and highlighting that 100% of the cotton it uses will be sustainably sourced by 2025.
Omnichannel selling and loyalty
Mango is continuing to focus its strategy on the customer. Consequently, it has increased its investment in the development of omnichannel projects which guarantee the best shopping experience for customers, irrespective of the channel through which they decide to interact with the brand.
A key element to better understanding the needs of customers is the Mango likes you loyalty programme, which was launched in April and May of last year in Spain and France, respectively. The results obtained to date far exceed the initial targets and there are now more than 3 million active customers in the programme in the two countries. All the knowledge obtained through the programme is shared among the departments of the company, which allows all teams to accelerate their focus on the customer, while helping to prioritise initiatives according to the level of impact they have on the customer experience.
We have also extended the Click and Collect service (which uses the store’s own stock), which will be available in over 500 stores during the first half of 2020. Thanks to this service, online orders can be delivered much quicker and more sustainably, given that this avoids the transfer of goods between the online warehouse and the store the customer has chosen to collect from.
During 2019, Mango also continued to progress in the development of the RFID project. The pilot test conducted in selected company stores in Spain far exceeded the initial forecasts. For this reason, the company is going to implement it throughout the chain over the next 3 years. RFID technology allows greater visibility and traceability of stocks. Its implementation will make it possible to optimise omnichannel services and initiatives, while allowing the company to move towards decision making based on real-time data.
Consolidation of the workforce and digital transformation
Mango’s excellent results and his recent appointment as Chief Executive Officer confirm Toni Ruiz as the company’s top executive, with responsibility for chairing the Steering Committee made up of 10 directors. This governing body is responsible for continuing to advance the process of digital transformation the company is currently engaged in. With this in mind, last year the company allocated a significant part of the 58 million euros it has invested towards this process.
A key part of this transformation process is the hub Mango occupies in Barcelona’s 22@ district, whose workforce increased from 20 to 50 employees last year. The hub employs engineers with a technological profile to implement some of the most significant projects of the online business, the customer department and the omnichannel retailing department.