BARCELONA: Spanish fashion retailer Mango is adapting to tariffs imposed by the Trump administration on imports from China and could rethink the types of products it sells in the U.S., which is its fifth-largest market, the company's chief executive said.
Mango does not plan to raise prices to offset the impact of tariffs, even though that could dent its margins, CEO Toni Ruiz said late on Monday in a joint interview with Reuters and French newspaper Les Echos at Mango's headquarters outside Barcelona.
But the retailer, which sells dresses from $49.99 to $359.99, is considering a range of higher-quality and more trendy clothes and accessories for the U.S. market, Ruiz said. Higher-priced items typically have a greater profit margin, making it easier to absorb extra costs.
“We will see how it progresses and we will adapt,“ Ruiz added. “At the moment there are no plans to produce in the country itself (the U.S.) but we will see how things evolve. It is a constant in our business to be constantly reflecting on sourcing, supply issues.”
U.S. President Donald Trump imposed fresh duties on Chinese goods last week after declaring China had failed to do enough to stem the flow of deadly fentanyl and its precursor chemicals into the United States.
Around 30% of Mango's products sold in the U.S. are made in China, its biggest manufacturing hub globally, Ruiz said. Turkey and India are its second and third-biggest sourcing countries globally. All shipments go through a logistics facility in Barcelona, from where the retailer decides what it sends to which markets.
Spain's second-largest fashion company has positioned itself as a premium retailer focusing on women's occasionwear, party dresses, and workwear, and has been expanding in the U.S. at the same time as its bigger rival Zara, owned by Inditex.
Mango, which aims to reach 4 billion euros in sales by 2026, reported on Monday an 8% increase in sales in 2024 to 3.33 billion euros ($3.61 billion). Its net profit rose 27% to 219 million euros.
The family-owned unlisted firm returned to the U.S. in 2022 and plans to open more than 60 stores in the country between 2024 and 2025. It aims for the U.S. to be among its top three markets by next year, with Ruiz adding that he sees “enormous” potential for growth.
Mango has no current plans to return to Russia even if the war in Ukraine ends, Ruiz said.
Following Russia's invasion of Ukraine in 2022, Mango transferred the 55 stores it had in Russia to franchises. Last year, Mango had 97 points of sale in Russia run by franchises.
