The luxury fashion company, Ermenegildo Zegna Group, has reported impressive results for the year 2022, showcasing a strong rebound for the brand. Compared to the previous year’s loss of €127.6 million, the company’s profit reached €65.3 million. Additionally, the adjusted EBIT rose to €157.7 million from €149.1 million in the previous year.
Despite the challenges brought about by the Covid-19 pandemic, especially in the Greater China Region during the second and fourth quarters, Zegna managed to achieve these remarkable results. Revenues also experienced a substantial increase, going from €1.29 billion to €1.49 billion. The Zegna brand itself witnessed a revenue increase from €1.03 billion to €1.17 billion, while Thom Browne saw its revenues rise from €264 million to €330 million.
The success of Zegna can be attributed to its strategic plan and the momentum of its brands. The company launched its new Zegna One Brand in July 2022 as part of its rebranding efforts, which was met with favorable reception. The demand for Zegna’s luxury leisurewear, footwear, and formalwear business experienced a solid rebound.
Another brand under the Ermenegildo Zegna Group, Thom Browne, also achieved significant growth. By opening 11 net directly operated stores and strengthening its client value management program, the brand made considerable strides, particularly in the Greater China Region.
Moving forward, Zegna is optimistic about the growth potential of its global business. The CEO expressed confidence in the reopening of the Greater China Region and the positive response to their collections worldwide. Nevertheless, the company acknowledges the potential impact of current financial uncertainties and a changing global environment on consumer attitudes and buying patterns.
Despite these challenges, Zegna expects double-digit revenue growth for the first quarter of 2023. The company’s goal is to reach around €2 billion in revenue with a 15% adjusted EBIT margin by 2025, excluding the impact of the newly acquired Tom Ford license.
Recently, Zegna acquired the long-term license for Tom Ford as part of Estée Lauder’s purchase of the brand. While the transaction has not yet closed, Zegna has promised to provide more details about its plans for the label once the deal is finalized.
Overall, the results for 2022 demonstrate a positive trajectory for Ermenegildo Zegna Group, driven by the success of its brands and strategic initiatives. The company remains focused on capitalizing on its momentum and expanding its global presence in the luxury fashion market.
Useful links:
– Zegna Official Website
– Thom Browne Official Website
