*

Mango considers higher-quality items for US market to

absorb

tariff costs

*

30% of Mango's US products made in China, logistics hub in

Barcelona

*

Mango plans to open more than 60 U.S. stores between 2024

and

2025

By Joan Faus

BARCELONA, March 11 (Reuters) - 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.

($1 = 0.9237 euros)