Italy's Ermenegildo Zegna's revenues soar 27.6% in FY23

The fourth quarter (Q4) of FY23 was particularly strong for Ermenegildo Zegna, with revenues reaching €570 million, up 40.1 per cent YoY and 42.9 per cent on a constant currency basis, and an organic growth rate of 19.6 per cent, the company said in a press release.

In the Zegna segment, full-year revenues amounted to €1,322 million, up 12.4 per cent YoY and 13.8 per cent on a constant currency basis, with organic growth at 19.5 per cent. Fourth-quarter revenues were €385 million, reflecting an increase of 15.2 per cent YoY and 17.0 per cent on a constant currency basis.

The Thom Browne segment showed a full-year revenue of €380 million, a 14.9 per cent increase YoY and 18.3 per cent on a constant currency basis. Organic growth for the year was 17.8 per cent. Fourth-quarter revenues for Thom Browne stood at €99 million.

The Tom Ford Fashion segment, since its consolidation on April 29, 2023, reported revenues of €236 million for the full year, with €97 million recognised in the fourth quarter, showcasing strong performance during the holiday season.

Revenues for Zegna-branded products were €1,109 million for the full year, a 20.1 per cent increase YoY. Thom Browne's product line revenues were €378 million, up 14.7 per cent YoY. The Textile product line, particularly supported by Lanificio Zegna, saw revenues of €151 million, up 10.4 per cent YoY. However, revenues for third-party brands declined significantly due to the end of the distribution licensing agreement for Tom Ford International.

Direct-to-consumer (DTC) revenues amounted to €1,265 million for the full year, making up 66.4 per cent of Group revenues, up from 61.5 per cent in FY 2022. Wholesale revenues for the full year were €635 million, an 11.3 per cent increase YoY.

Zegna experienced strong growth across all key geographies, with North America showing the most significant growth, supported by the consolidation of Tom Ford Fashion. Europe, Middle East, and Africa (EMEA), Asia-Pacific (APAC), and Latin America all reported double-digit growth in revenues, with EMEA recording €659 million, APAC €788 million, and Latin America €38 million for the full year.

“The significant increase in our revenues in 2023, and especially from our network of directly operated stores, is a clear indication that demand for our brands remains healthy, and that we are successfully executing our strategy to increase their desirability and solidify their position as leaders in the luxury market. The continuing improvement in the Zegna brand productivity, in particular, is a testament to the strength of our execution, supported by our successful merchandising and CRM,” said Ermenegildo ‘Gildo; Zegna, chairman and CEO of the Zegna Group.

Fibre2Fashion News Desk (DP)