Spanish fashion retailer Mango has lowered its 4-year forecast because it has taken longer to get the estimated turnover numbers from the brand's new collections.
"A little optimistic"
Mango had launched its own children's and lingerie collections, adding lines for teenagers and mature women this year. These are all part of a 10-year growth strategy, but it has developed slower than anticipated.
"In the past, we've been a little bit optimistic and now we've decided to apply more conservative criteria (to sales targets)," CEO Enric Casi told Reuters. "The new lines will take a couple of years to reach sales per square metre ratios similar to those of our traditional offerings," CEO Enric Casi told Reuters.
Expand into more markets
The 2017 forecast was too positive according to Casi and it has been adjusted down from 4.97 billion euro to 3.27 billion euro, a third lower. He emphasized Mango's sales were not bad, but merely that the new collections have needed a bit of time to develop sales.
Mango managed a 2013 turnover of 1.85 billion euro, slightly lower than the predicted 1.98 billion euro. As part of the growth strategy Mango has created for the next few years, the company wants to open 4 stores per week, while selling to men, children and mature women. It used to focus merely on people in their twenties and thirties, but the change puts it in direct competition with Swedish H&M and Spanish Zara, which is part of giant Inditex.