Spanish Fashion Retailer Mango Sees Major Growth Despite Russia Exit and Inflation Impact

  • Mango reports record turnover of €2.7bn in FY22, up 20.3% from previous year
  • Pre-tax profit rose by 26.2% to €103.3m and net profit increased by 20.9% compared to 2021
  • EBITDA was €437m, an increase of €14m from FY21
  • Cancellation of operations in Russia impacted the business negatively by approximately €20m
  • Investment in technology and logistics totalled €107m, double the figure for 2021
  • Mango signs refinancing agreement linked to ESG criteria
  • Sustainability strategy presented until 2030 with new goals and measuring systems

Spain-based fashion retailer Mango has reported a record turnover of €2.7bn in the financial year 2022, marking a 20.3% increase from the previous year and a 13.2% rise compared to 2019. Pre-tax profit rose by 26.2% to €103.3m (£91.5m), while net profit hit €81m (€72m), an increase of 20.9% compared to 2021. EBITDA was €437m (£387m), a €14m (£12m) rise from the previous year. The company’s investment in technology, logistics, facilities, and stores totalled €107m (£95m). Despite the cancellation of operations in Russia affecting the business negatively by approximately €20m (£17.7m), Mango witnessed strong growth in physical channels with 119 net store openings. The company closed 2022 with a total of 2,566 stores. Toni Ruiz, CEO of Mango, said the business model was based on a unique ecosystem of channels and partners, recovering its essence with innovation as a core value in all departments.

Factuality Level: 10
Factuality Justification: The article provides accurate information about Mango’s record sales, profitability, store growth, investment in technology and sustainability efforts, and includes quotes from the CEO. It is well-researched, objective, and free of sensationalism or personal opinions.
Noise Level: 3
Noise Justification: The article provides relevant information about Mango’s record sales and profitability, including contextual factors such as macroeconomic conditions and investments in sustainability. It also includes a quote from the CEO that adds value to the overall performance of the company. However, it could benefit from more analysis or discussion on the specific strategies and actions taken by the company to achieve these results.
Financial Relevance: Yes
Financial Markets Impacted: Mango’s stock price and other fashion retailers
Financial Rating Justification: The article discusses Mango’s record sales, profitability, and investment in technology and logistics, which can impact the company’s financial performance and potentially affect the stock price. It also mentions the challenges faced due to macroeconomic conditions and geopolitical events, such as the war in Ukraine and suspension of operations in Russia, which could have an impact on other fashion retailers operating in similar markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: No extreme events mentioned in the article, but there are challenges like macroeconomic and geopolitical conditions due to the war in Ukraine and inflation.

Reported publicly: www.retailsector.co.uk