Italian fashion group Ermenegildo Zegna reports strong earnings in H1

22 Oct '21

2 min read

Pic: Ermenegildo Zegna

The Ermenegildo Zegna Group, an Italian leading luxury fashion house, has reported a 49.9 per cent revenue jump to €603.3 million in the first half (H1) of FY21 ended on June 30, 2021, compared to the revenue of €402.4 million in the same period of previous fiscal. Profit for the six-month period expanded to €32.2 million (H1 FY20: loss €87.7 million).

“Our enhanced focus on our legacy brand, the strengthening of our luxury textile platform and the dynamic pace of Thom Browne have supported a strong recovery during the first half of this year which has accelerated over the summer,” Ermenegildo Zegna, CEO of Ermenegildo Zegna Group, said in a press release.

Geographically, sales from EMEA region surged 37.9 per cent to €182.5 million (€132.3 million) as domestic clients traffic resumed especially in Q2 due to the loosening of COVID-19-related restrictions. In particular Italy outperformed the regional average with a growth of 65.2 per cent year over year.

While in the APAC region, menswear brand's largest market, revenues grew by 63.2 per cent led by China, up 81.1 per cent over H1 FY20. Other markets in the region were impacted by lower tourism and COVID-19 restrictions, including Japan where sales declined by 9.1 per cent. Furthermore, sales from North America grew 26.8 per cent in H1 FY21 driven by the US which grew by 28.9 per cent.

The company’s Zegna segment reported a 36.1 per cent revenue increase to €465.9 million (€342.3 million) led by the DTC channel of the Zegna branded products. With continued retail expansion, Thom Browne segment’s first half revenue more than doubled to €142.6 million (€63.2 million).

“While the public health situation remains uncertain globally, we are ready to face the coming months with enthusiasm, focusing on the implementation of the Zegna One Brand strategy. We will continue to invest in creativity, innovation, talent, and technology in order to sustain the Zegna Group’s leadership position in the global luxury market,” Zegna concluded.

Fibre2Fashion News Desk (JL)

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