How Mango surpassed $3 billion in sales through its US expansion

Mango, the Barcelona-based fashion brand, is reaping some big rewards following its expansion in the US.

In 2023, the retailer notched a record $3.4 billion in sales, beating its own guidance, it reported on Monday. Despite growing competition from ultra-cheap retailers like Shein and Temu, sales for the brand rose 19%, which it attributes to an “upmarket” audience that’s been opting for its partywear and fashion pieces, according to Reuters.

Much like other brands, Mango has raised some prices, particularly in its dresses category. At the same time, it’s reduced the number of discounted items it offers as it casts itself as a premium retailer. However, its average shopper is less sensitive to the increases.

“For many items prices have not increased, but the price mix of our collection has,” CEO Toni Ruiz told Reuters.

Mango’s net profit more than doubled year over year, and it reported zero net debt.

While Mango has maintained a presence in the US since 2006, its expansion has been strategic, as it noted in 2022.

At the time, it aimed to open 30 new stores in the country by 2025 and had three phases of expansion in mind, starting with New York, where it opened a new flagship on bustling Fifth Avenue.

For the second phase, Mango said it planned to open four to five stores in 2022 and 2023 in cities in Florida such as Miami, Boca Raton, Orlando, and Tampa. And finally, for the third phase that kicked off last year, the brand said it would open stores in Georgia, Texas, California, Nevada, and Arizona.

Last year, it opened about 20 new stores in the US, and has plans for 30 more, making the country its third largest market by 2026.