Spanish retailer Mango reached the “break even” point in operating profit in 2018, despite making a net loss of €35m (£32.5m) for the year.
Gross profit increased by 36% year on year and EBITDA was up 17% to €135m (£125.2m).
Total sales rose 1.8%, or €40m (£37.1m), to €2.23bn (£2.07bn) compared with the 2017 financial year.
Mango said this was driven by the success of its new collections and online sales, which grew 31% year on year to €445m (£413m). Online accounted for 20% of the group’s total sales, which was its goal for 2020.
The company has now increased its online sales forecasts for 2019 and 2020, to account for 25% and 30% of total sales respectively.
In the last two years, Mango has halved its net financial debt from €617m to €315m (£574.6m to £293m), after signing a refinancing agreement in December.
The company said: “In 2018, In a complex environment and with the fashion industry in full transformation, customers have valued our collections and we have succeeded in increasing our sales – something which did not occur in previous years. Because of this, we have broken even, and our EBITDA has grown, which will allow us to fulfil our strategic plan, and continue to reduce our debt and financial expenses.”