Mango swings to full-year loss as sales drop 22 percent

Spanish fashion retailer Mango has swung to a full-year loss after its sales fell 22 percent amid the pandemic. For the 2020 fiscal year, the company reported a loss of 110 million euros compared to a profit of 41 million euros a year earlier. Sales fell to 1.84 million euros compared to 2.37 million euros for the previous year, as store closures and limited opening hours impacted the business. Sales from physical stores plummeted by 43 percent during the period, though that was slightly offset by a 36 percent increase in online income to 766 million euros. Online sales represented 42 percent of total group turnover compared to 24 percent for 2019. That online growth was particularly strong in some of the company’s major markets, such as France, Italy and Portugal. The company has previously announced a target to achieve online turnover of 1 billion euros in 2021. Breaking sales down by geographical regions, the group’s international activity represented 79 percent of the total, while its home Spanish market represented 21 percent. By business lines, Man, Kids and Violeta continued to account for 18 percent of total sales. Post IFRS-16 EBITDA stood at 193 million euros. Mango CEO Toni Ruiz described the year as “absolutely exceptional and unpredictable”. “Thanks to the major commitment Mango has made to its online channel over the last 20 years, we have succeeded in it representing 42 percent of our total turnover in 2020, which is an extraordinary figure in our sector and a huge competitive advantage for our company,” he said in a statement. “We have achieved reasonable turnover levels bearing in mind the context and we have accelerated the digital transformation of the company even further. I would like to emphasise the huge effort made by the best team we could wish to have. Thanks to all our employees, the financial and organisational structure of the company remains very solid.” Image: Mango
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