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Store openings eat into Mango's profits

Mango’s aggressive international store opening strategy ate into its full year profits, which have fallen 11.2% to €107m (£72m).

The Spanish fashion chain recorded a 9.3% increase in turnover to €2.0bn (£1.3bn) in 2014, with EBITDA of €223m (£149m); however, its bottom line was hit by investment in stores, logistics and a new design centre.

During 2014 Mango opened 43 megastores worldwide, including on Henry Street in Dublin. It has more than 2,700 stores in 109 countries and is planning 75 more in unknown locations for 2015.

Online sales made up 9.1% of total turnover during the year, as the business grew its ecommerce arm to include 12 new countries. South America, Asia and Africa are targets for 2015.

Mango’s new logistics park in Catalonia, Spain, will become operative in early 2016. Work has begun to extend its design centre in the same area by 258,300 sq ft.

In July 2014 Mango, which also operates Mango Kids and plus-size label Violeta by Mango, cut its revenue forecast for the next three years by around a third to allow for the investment.

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