Mango will celebrate its 40th anniversary in 2024 at a buoyant moment, with records in all its business magnitudes and with the activation of a new strategic plan that will lead it to open 500 new stores until 2026. This new phase of expansion will begin after having exceeded 3,000 million euros in turnover for the first time and in parallel to a reinforcement of its governance structure that will involve the entry of four independent directors to its board of directors. These are the president of Puig, Marc Puig; Jordi Constans, former executive of Danone and LVMH; Jorge Lucaya, founder of AZ Capital; and IESE professor Jordi Canals. In addition, the owner of the textile group, Isak Andic, has decided to make the CEO, Toni Ruiz, a shareholder, who from this month will control 5% of the company's shares.
According to the company based in Palau-solità i Plegamans (Barcelona), the 2023 financial year will close with a turnover exceeding 3,000 million euros, breaking the historical record of 2022, the year in which the company reported 2,688 million after growing 20%. In the last twelve months, Mango has managed to maintain this double-digit growth and consolidated the positive trend in all channels, including the online store, which has expanded to 20 new countries and is now available in more than 110 markets worldwide.
In this growth process, the 130 new net openings of physical stores and the renovation of another 80 establishments to adapt them to the most evolved versions of its commercial model have also been key. In this sense, 2023 will close with a network of nearly 2,700 points of sale in more than 115 countries. Mango's strong commitment to the United States stands out, a country where it already has more than 20 establishments and where this year, for the first time, it has opened stores in the States of Georgia, Texas, and California.
The seed of the chain was the store that Isak Andic opened in 1984 on Paseo de Gràcia in Barcelona, so in 2024 Mango will celebrate its 40th anniversary with the satisfaction of having become one of the largest European groups in the fashion industry. The anniversary celebration will coincide with the launch of a new strategic plan for the 2024-2026 period, which will be presented next March. It is an expansive plan aimed at "strengthening the stability and solidity of the group," as well as reinforcing "its differential value proposition" and the permanent commitment to innovation, sustainability, and the circular economy.
According to Mango, the new strategic plan will boost sales "through a major expansion of the store network," which will increase by nearly 500 new points of sale by 2026. In the words of the chain itself, this "ambitious expansion plan" will focus on key markets such as the United States, Spain, France, Italy, the United Kingdom, India, and Canada.
Toni Ruiz enters the capital
To drive this new phase of growth, the group's owner, Isak Andic, who holds the non-executive chairmanship, fully trusts the CEO, Toni Ruiz, whom he has decided to reward by incorporating him into the company's capital, where he has come to control a 5% stake since this month. This share package has been delivered to him as remuneration for his performance as CEO after executing a capital increase against reserves.According to the family business, this step, which has already been approved by the board of directors, generates "stability" and reinforces the long-term commitment to the business project."Toni Ruiz is an admired executive both internally and externally. He is an excellent professional and a great person, a fundamental quality in the management of a company. His entry into Mango's shareholding is a recognition of his outstanding management at the head of the company in recent years, which has resulted in excellent results, but, above all, it represents my conviction that his vision will contribute to the continuity, solidity, and growth of Mango in the future," Andic stated.
Ruiz expressed his "gratitude and enthusiasm," highlighting the "great responsibility" that this new stage entails. According to the executive, in recent years all the company's teams have been working hard to "establish a vision that has allowed us to become one of the largest groups in Europe in the fashion industry." "We will continue to drive this project forward in the future, with solidity, stability, and ambition to leave a bigger and better company for future generations," added Ruiz, who was appointed CEO in March 2020. Until then, he had held the position of general manager, which he accessed in October 2018. Previously, Ruiz, who holds a degree in Economics from the University of Barcelona, had been Mango's CFO, a group he joined in 2015 from Leroy Merlin.
In addition to opening Mango's capital to people outside the family, Isak Andic has made another major strategic decision regarding corporate governance: the incorporation of independent directors to the board of directors, the textile group's highest decision-making body. With this step, Mango advances in the adoption of good governance practices that are already common in listed companies, but also in large family groups, which are committed to the maximum professionalization of their management and governance bodies.
Who's who on Mango's new board
Until now, Mango's board was composed solely of four people: Isak Andic, who holds the presidency; his son,Jonathan Andic, who is the global director of Mango Man;Toni Ruiz, who is the CEO, and byDaniel López,another executive of the owner's utmost trust and who holds the position of director of expansion and franchises.Now, a fourth person who is also part of the management team and who, therefore, is also promoted, joins the board of directors. This is Margarita Salvans, who is Mango's financial director. In parallel, the group has hired four independent external directors: Marc Puig, Jordi Constans, Jorge Lucaya and Jordi Canals. Thus, the board expands from 4 to 9 members: four executives and four independents, plus the chairman.
Marc Puig is the chairman and CEO of the Catalan perfumery group Puig, so he will be able to bring to Mango his extensive experience in managing family businesses and also in the world of fashion, since the company he leads owns brands such as Carolina Herrera, Nina Ricci and Jean Paul Gaultier and Paco Rabanne. Like Mango, Puig is at the best moment in its history, with a 40% growth in 2022, when it invoiced 3,620 million euros and earned 400 million.
Jordi Constans is a Barcelona executive who began his professional career at Vileda, although it was at Danone where he found success, since, after holding various positions in the Spanish subsidiary, he became part of its global management committee, where he was the head of the yogurt and dairy products division. Occupying that relevant position in Paris allowed him to make the leap to the world's largest luxury products group, LVMH, where in 2011 he was hired as president and CEO of Louis Vuitton, the prestigious brand of handbags and leather goods. Currently, he is an advisor to various companies and is part of the board of directors of Puig and Fluidra.
Jordi Canals is one of the most prestigious professors at IESE, the business school of the University of Navarra, of which he was general director between 2001 and 2016. Doctor in Economics, currently, in addition to teaching, he is the president of the Center for Corporate Governance at IESE, making him one of the greatest experts in corporate governance, corporate strategy and globalization. He has also been a member of the boards of various public and private companies.
Finally, Jorge Lucaya is a veteran financier who in 2004 founded AZ Capital, a firm specializing in advice on mergers and acquisitions and all types of corporate operations. He has been involved in many of the main transactions that have closed in the Spanish business world in the last three decades, regularly working for the companies that make up the La Caixa group. Lucaya began his career at Chase Manhattan Bank, where he held positions in Barcelona, London, and Madrid. He then worked for Morgan Stanley, being co-head of the investment banking business in Spain.
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