Mayoral Shakes Up Structure, Focuses on Brand Integration to Slash Expenses

Mayoral is reorganizing. The Malaga-based children’s fashion company, which in recent years has diversified its business with the entry into women’s and men’s fashion through acquisitions, seeks to adjust its structure to improve the profitability of the new lines. This move has meant the departure of long-standing executives such as Eulogio Sánchez, with a career of almost thirty years in the group and who has been in charge of the integration of the acquired companies from the operations point of view.

As confirmed to Modaes by sources close to the company, Mayoral is carrying out a reorganization of departments to integrate functional areas of the women’s brand (Hug&Clau) and the men’s brand (Boston) into the general structure, dedicated to the children’s segment. Logistics and ecommerce are two of the areas of both brands that will come under the structure of Mayoral, one of the world’s largest children’s fashion groups.

The aim of this move is to improve the profitability of the new brands division. According to sources familiar with the move, Boston closed 2024 with a better sales performance than Hug&Clau, but both require greater profitability.

Mayoral is integrating functional areas of the women’s brand (Hug&Clau) and the men’s brand (Boston) into the overall structure.

The integration of departments is leading to the departure of executives such as Sánchez. The executive, who was part of the group’s management committee, left the company last week to embark on a new career path. Sánchez began his career at Mayoral in the production area, ending up as purchasing director and then making the leap to the new brands as director of operations and strategy.

More than five years ago, Mayoral began a diversification strategy to grow beyond children’s fashion, a complex segment due to high competition and low birth rates. The company first launched childcare items and a premium line (Abel&Lula), before making the final move in 2021 with the acquisitions of Boston and Hug&Clau.

In July 2021, the acquisition of the men’s fashion brand Boston, then based in San Sebastián de los Reyes, Madrid, and affected by the pandemic crisis,was announced. In September of the same year, Mayoral repeated the move with the purchase of Hug&Clau, also based in Madrid. These were the first two acquisitions in Mayoral’s history.

The company has been affected by a drop in sales in the last year.

To lead the creation of this new division, the company drew up a structure occupied by executives with a long history in the group, as was the case of Eulogio Sánchez. Carmen Ríos is still in charge of the new brands division.

Diversification is, together with geographic development, one of the growth levers Mayoral has put in place to address the stagnation of its main segment.

Mayoral, which sold a total of 28 million garments in 2024 (compared to 31 million in 2023), ended 2024 with a 7.5% drop in turnover, which stood at 370 million euros. In 2023, the company’s turnover stagnated, thanks to the fact that the new brands division managed to contain the reduction in children’s sales.

The group, which has a workforce of 2,200 employees, has set itself the target for 2025 of recovering €400 million in turnover. To this end, the company will continue to focus on opening single-brand stores, aiming to reach a network of 400 stores by 2025 and focusing on “strategic markets” and department stores.