Ermenegildo Zegna, the renowned Italian luxury menswear label, has showcased an impressive financial performance in the year 2018. The company’s reported net income surged by 4% to reach €34 million, demonstrating its ability to thrive in a competitive market. Despite facing some revenue fluctuations due to currency exchange rates, Ermenegildo Zegna still managed to achieve a total revenue of €1.159 billion.
Furthermore, the EBITDA for Ermenegildo Zegna experienced a slight increase to €143 million, highlighting the brand’s commitment to maintaining profitability. Notably, the company successfully acquired an 85% stake in Thom Browne, a prominent New York-based label, through self-funded means. This strategic acquisition underscores Ermenegildo Zegna’s financial robustness.
The brand’s expansion in international markets has been a significant contributor to its growth, with exports constituting over 90% of the total sales. In 2018, Ermenegildo Zegna witnessed remarkable sales growth in key regions such as Greater China, Russia, Canada, Korea, and Japan. The brand’s strong performance in these markets significantly contributed to its positive financial outcomes for the year.
As part of its growth strategy, Ermenegildo Zegna currently operates 480 monobrand stores worldwide and has ambitious plans for further expansion in 2019. The brand is set to open new stores in prime locations like New York, New Jersey, and Istanbul, in addition to undertaking renovation projects in cities such as Palo Alto, Sao Paulo, Dubai, and Beijing. These initiatives are aimed at bolstering the brand’s global presence and attracting a new clientele.
CEO Gildo Zegna has expressed optimism about the company’s future trajectory, especially with the inclusion of Thom Browne’s results in the upcoming financial year. Ermenegildo Zegna is also leveraging various digital platforms like Farfetch, WeChat, and Tmall to strengthen its omnichannel approach. By integrating physical and virtual distribution channels, the brand seeks to offer customers a more personalized and efficient service while optimizing its production processes.
In summary, Ermenegildo Zegna’s stellar financial performance in 2018 underscores its stronghold in the luxury menswear market. With a keen focus on innovation, expansion, and digital integration, the brand is well-poised for sustained growth and success in the ever-evolving fashion industry.
For more information, you can visit Ermenegildo Zegna’s official website here or explore their latest collections on Farfetch here.
