Ermenegildo Zegna Group, the renowned Italian luxury corporation specializing in high-end menswear, has continued its successful streak from last year and kicked off 2023 with a bang. The group, which is listed on the New York Stock Exchange, achieved an impressive growth rate of 13.4% in the first quarter, resulting in sales of 428.3 million euros. Both its flagship brand Zegna and the Thom Browne label experienced double-digit increases, with growth observed across all regions.
Despite the challenges caused by Estée Lauder’s takeover of Tom Ford, which was previously licensed by Ermenegildo Zegna since 2006, the group managed to perform exceptionally well. The cosmetics giant and the Italian company are expected to reach a new agreement regarding the Tom Ford business in the upcoming weeks. If the Tom Ford activity had been factored into the group’s first-quarter results, the growth would have been even higher, at 19.1%, according to the company.
Gildo Zegna, the CEO of Ermenegildo Zegna Group, expressed optimism about the company’s performance, highlighting the “encouraging recovery at the beginning of the year, driven by the reopening in China,” as well as “the robust growth of our activities in the US and Europe, driven by our retail network.” Sales in the Asia-Pacific region, which contribute to nearly half of Ermenegildo Zegna’s total revenues, increased by 17.4% to 205.3 million euros in the first three months of 2023. The Chinese market witnessed a strong recovery, with sales soaring by 15.9% to 164.5 million euros, while Japan experienced a remarkable spike of 31.9% in sales.
Furthermore, Europe displayed solid growth, and the Middle East and Africa outperformed expectations, contributing to an overall growth rate of 11.6% to 150.1 million euros in the EMEA region. However, due to the Tom Ford transaction, sales in North America observed a slower increase of only 6.2%, reaching 65.6 million euros.
Gildo Zegna expressed his satisfaction with the success of both Zegna and Thom Browne, emphasizing the value of their vertically integrated Made in Italy Textile Luxury platform, which has enabled them to expand their manufacturing and production capabilities. He also underscored how Zegna’s rebranding efforts have solidified the brand’s position as a trailblazer in the luxury market, particularly in the emerging concept of “quiet luxury.”
Under the leadership of Alessandro Sartori, the Zegna brand achieved sales of 271.9 million euros in the first quarter of 2023, a remarkable surge of 21.4%. This growth was propelled by the popularity of its upscale leisurewear and footwear, as well as its made-to-measure business. Direct sales also experienced a significant rise of 24.8% to 229.6 million euros.
Thom Browne, the American label, generated sales of 112.6 million euros in the first quarter, reflecting an impressive growth rate of 21.4%. Its direct sales network contributed 42.8 million euros to this figure, witnessing a robust increase of 25.4%. Similar to the previous year, women’s clothing and children’s products displayed strong revenue growth, surpassing that of the men’s products during the quarter.
Furthermore, Ermenegildo Zegna’s textile business performed well, recording a solid increase of 11.8% to 33.8 million euros.
In summary, Ermenegildo Zegna Group has had an exceptional start to 2023, with impressive growth rates observed across its brands and regions. The company’s dedication to its Made in Italy Textile Luxury platform, combined with successful rebranding efforts, has cemented its position as a leader in the industry. With sustained momentum and strong sales performance, Ermenegildo Zegna Group is poised to maintain its success in the luxury fashion market.
Useful links:
Ermenegildo Zegna Group Website
Thom Browne Website
