Spanish fashion retailer Mango reported on Monday record sales of €3.1 billion ($3.39 billion) in 2023, beating its forecast after matching domestic rival Zara’s strong expansion in the United States.

The Barcelona-based brand said sales jumped 19 percent last year to exceed its forecast of €3 billion through a focus on party wear and fashion pieces for upmarket shoppers who are less sensitive to higher prices.

That helped it fend off pressure from the rapid growth and bargain prices of online players such as China-based Shein.

Mango has positioned itself more as a premium retailer and has higher prices than Inditex-owned Zara and Sweden’s H&M in some party pieces, retail intelligence company EDITED said.

The biggest price rises are in dresses, where average in-stock prices grew 46 percent for the 2024 spring collection versus two years ago in markets such as the US, according to EDITED.

“For many items prices have not increased, but the price mix of our collection has,” said Mango CEO Toni Ruiz, adding the company has reduced the number of pieces sold at a discount.

Mango’s net profit rose to €172.1 million, from €81 million in 2022, Ruiz said at a press conference. Its gross margin was near 60 percent in 2023 and the company has zero net debt, Mango said.

The family-owned fashion brand is following in the footsteps of the world’s largest listed fast-fashion group Inditex, which is also expanding in the US.

New US Stores

Ruiz said the company plans to open 30 more stores in the United States, and make that market its third largest by 2026, as part of a plan to open 500 new shops worldwide in the next two years to reach 2,700 stores.

The company invested €187 million last year, mainly in new stores and logistics centres.

Around 20 of the 130 stores Mango opened last year were in the United States, where it began an expansion in 2022 with a flagship store in New York.

It aims to reach total annual sales of €4 billion and double its net profit by 2026 as a result of the expansion, Ruiz said.

He said Mango has no plans to list on the stock market and does not need new investors to raise resources for an expansion plan that will require €600 million of investment by 2026.

The company has been carrying out an internal reorganisation, creating a new board of directors led by founder Isak Andic. Ruiz acquired a 5 percent stake in the company last year.

By Corina Pons and Charlie Devereux; Editors: Alexander Smith and Susan Fenton

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Mango to Add 500 Stores by 2026

The Spanish fast-fashion brand also expanded its board and forecast 2023 revenues above €3 billion.