Mayoral increased sales to €327.5 million in 2021, but reduced profits by 40%
“The consolidated annual accounts reflect the beginning of the recovery from the Covid-19 pandemic. The group’s strategy of diversifying geographically and across channels, together with a strong financial position, has enabled us to maintain a healthy balance sheet in line with that of previous years, with a notable increase in sales,” the company said in its annual report.
The company also noted in its accounts an increase in expenditure “on technological innovation activities by one of the group’s subsidiaries, specifically in the planning, design, preparation, development and procurement of textile samples”.
Among Mayoral’s milestones in 2021 was the capital increase in its subsidiaries in Chile and Peru until 100% of their shares were acquired. In addition, the group details in its accounts the incorporation of fashion brands Boston and Hug&Clau to its portfolio.
In May 2021, at the symbolic price of €1, it took a 100% stake in the company Simply Business, which operates the men’s fashion brand Boston. Subsequently, in November last year, it increased Simply Business’ capital by €5 million, according to the company.
In July 2021, it also acquired a 75% stake in Top TrendyChic
Investments in the acquisition of these two fashion brands therefore amounted to €10.3 million.
Impact of the war in Ukraine and relocation of production
The company’s forecast for 2022 is that “a situation of significant uncertainty and instability is being generated in markets worldwide” due to Russia’s invasion of Ukraine. The company’s activity in these markets has come to a standstill and accounted for 5% of its business. “Management is assessing the potential impact, although no significant impact on the group’s financial situation is to be expected,” he said.
Mayoral closed the year on December 31, 2021 with an average of 1,716 employees. With 269 company-owned and franchised shops and an online store operating in 21 markets, the company highlighted in its management report that it plans to move production to areas such as Southeast Asia, India, China and North Africa.