Ermenegildo Zegna, the renowned Italian luxury menswear group, has reported a significant increase in sales for 2021. The company’s turnover reached an impressive €1.29 billion, marking a 27% growth compared to the previous year. This surge brings Zegna just 2% below its pre-pandemic levels in 2019, indicating a remarkable recovery for the brand.
Gildo Zegna, the CEO of the fashion house, also made an important announcement regarding the brand’s commitment to sustainability. Starting from 2023, Ermenegildo Zegna will no longer use real fur in its collections. This decision reflects the company’s dedication to producing high-quality products while respecting the natural world. It aligns with Zegna’s overall philosophy and highlights their effort to adapt to changing consumer preferences.
Among Ermenegildo Zegna’s portfolio of brands, the main Zegna label stands out, accounting for 66% of the group’s total revenues. This brand experienced a remarkable increase in sales in 2021, reaching €847.3 million, a 33% surge compared to the previous year. The success can be attributed to the brand’s focus on expanding its offerings in shoes and leisurewear, attracting a younger and more casual customer base. Alessandro Sartori, the creative director, has played a crucial role in modernizing Zegna’s classic pieces to appeal to this target audience.
Another brand under the Ermenegildo Zegna Group, Thom Browne, has also achieved exceptional financial results. Compared to 2019, the brand saw a remarkable 64% increase in sales and a 47% jump from the previous year, reaching €263.3 million. This growth can be attributed to the brand’s expansion in mono-brand stores, increasing from 28 to 52 within a span of two years. As a result, Thom Browne experienced a significant increase in direct sales, more than doubling the figures from 2019.
Although the overall textile revenues of the group experienced double-digit growth at 17%, there was a slight decrease of 6% compared to 2019. Nevertheless, Ermenegildo Zegna Group’s sales increased in all regions except Japan, where a decline of 10% was observed due to the impact of Covid-19 restrictions and a drop in tourism.
The North America region saw a remarkable 46% increase in sales, reaching €191.2 million, primarily driven by the strong performance in the United States. The market in Asia-Pacific, being the group’s main market with a 54% share, reported a 26% growth in sales, reaching €696.3 million. Particularly in the Greater China Region, which accounts for nearly half of the company’s total revenues, sales grew by 34% due to increased domestic luxury goods spending and the brand’s strong presence in the country for three decades.
In the EMEA region, encompassing Europe, the Middle East, and Africa, Ermenegildo Zegna Group witnessed a 20% increase in sales, reaching €380 million. Italy’s financial rebound and exceptional performance in the United Arab Emirates were the main contributing factors to this growth, signifying a recovery to pre-pandemic levels in 2019.
The company’s direct sales channel played a significant role in its success, accounting for 66% of total revenue. This channel experienced a remarkable growth of 39% in 2021 compared to 2019. On the other hand, the wholesale channel saw a 14% increase but was down 11% compared to 2019.
Ermenegildo Zegna’s impressive sales growth in 2021 showcases a strong recovery and a promising future for the luxury menswear group. The decision to stop using real fur starting from 2023, coupled with a focus on modernization, positions the brand to appeal to a wider audience and align with the growing importance of sustainability values in the fashion industry.
Useful links:
1. Official Ermenegildo Zegna Website
2. Official Thom Browne Website
