Ermenegildo Zegna Group, the luxury menswear brand, has ended the year on a high note, with projected sales growth of 27.6% in 2023. The Italian group, known for its high-end offerings, announced its preliminary annual results, revealing that both its flagship Zegna brand and Thom Browne label experienced double-digit increases in sales across all regions.
One of the key factors that sets Zegna Group apart from its competitors is its impressive performance. While LVMH’s Fashion & Leather Goods division saw a year-on-year growth of 9%, with organic growth reaching 14% and sales hitting €42.16 billion, Zegna Group’s fourth quarter sales skyrocketed by 40.1% to €570.3 million, outperforming its own already impressive growth in the third quarter of 2023.
The Zegna segment, which includes the group’s textile business, saw sales reach €1.322 billion in 2023, marking a 12.4% increase. The Zegna brand alone, led by designer Alessandro Sartori, achieved sales of €1.1 billion, experiencing a 20.1% growth. This can largely be attributed to the popularity of its high-end leisurewear, which now accounts for 50% of its total sales. Furthermore, the brand’s footwear sales surpassed expectations, contributing 13% to its overall revenue.
Direct sales played a pivotal role in Zegna Group’s success, recording an impressive 22.4% climb to €945.3 million in 2023. This compensated for the single-digit growth (+8.4%) in sales through the wholesale network, which were hindered by delivery delays.
Throughout the year, the brand made significant moves to enhance its offerings. It renewed its agreement with eyewear manufacturer Marcolin until 2030, securing the design, production, and distribution of its line of prescription and sunglasses. Zegna Group also took over direct distribution in South Korea and changed its beauty licensing partners, transitioning from Estée Lauder to the Italian company Give Back Beauty.
Thom Browne, Zegna Group’s American label, also had a successful year, with sales reaching €380 million in 2023, denoting a growth of 14.9%. The brand’s direct sales network generated €183.4 million, representing a 25.9% increase. The emphasis on expanding its direct sales channel and its focus on women’s clothing, which accounts for 30% of the brand’s total revenue, contributed to its strong growth.
In addition to its fashion brands, Zegna Group’s textile business thrived as well, experiencing a 10.4% increase in sales, reaching €150.9 million.
CEO Gildo Zegna expressed his satisfaction with the company’s continued growth in the EMEA region, the strong performance in the United States driven by Zegna’s direct-to-consumer channel, and the recovery in China. The group’s sales in North America surged by 41.6% in 2023, reaching €417.3 million, while EMEA saw a growth of 26.6% to reach €658.7 million. Asia-Pacific witnessed a 22.2% increase, with Greater China alone experiencing a growth of 20.5% and sales amounting to €595.5 million.
As Ermenegildo Zegna Group concludes 2023 with outstanding results, it solidifies its position as a leading luxury menswear brand and lays a strong foundation for future growth and success.
Useful links:
1. Ermenegildo Zegna Group Official Website
2. Zegna’s Impressive Sales Growth – Business of Fashion
