Italian firm Ermenegildo Zegna's Q3 FY23 revenue soars 20.8%

In the Zegna segment, revenues amounted to €298 million for the third quarter, registering a 3 per cent increase YoY and a 6 per cent rise on a constant currency basis. The segment's organic growth rate was 12.7 per cent for the quarter, boosting the nine-month revenue to €950 million. This represents an increase of 12.7 per cent YoY and 14.1 per cent on a constant currency basis, the company said in a press release.

Thom Browne, another of Zegna's segments, reported third-quarter revenues of €74 million, up by 6.3 per cent YoY and 13.1 per cent on a constant currency basis. Revenues for the first nine months of FY23 for this segment reached €282 million, reflecting a 10.4 per cent increase YoY and 13.3 per cent on a constant currency basis.

Adding to Zegna Group's diversified revenue stream was the Tom Ford Fashion Segment. Operational since April 29, 2023, it reported third-quarter revenues of €75 million, thereby contributing €139 million since its inception.

As for the product lines, Zegna-branded products led the charge with €242 million in third-quarter revenues, marking an 8 per cent YoY increase. Thom Browne followed suit, registering €73 million in revenues and contributing nearly 30 per cent of this from its womenswear line. The textile business wasn't far behind, pulling in €35 million in the third quarter, a 17.2 per cent increase YoY. However, the revenues from third-party brands sagged, dwindling 86 per cent YoY to just €5 million.

Turning to sales channels, Zegna's DTC revenues reached €282 million in the third quarter, showing a robust 29.9 per cent increase YoY. The wholesale channel also showed promise with €148 million in third-quarter revenues, a 6.6 per cent increase YoY. On the geographical front, Zegna Group witnessed double-digit organic growth in key markets. In the EMEA region, revenues surged to €152 million, while North America pulled in €111 million, significantly boosted by €102 million in revenues from the US alone. The APAC region contributed €158 million, and Latin America brought in €8.4 million.

“Our results this quarter continue to showcase the broad-based strength of our three brands and the successful execution of our strategy. I am particularly pleased that we are performing well across a diverse set of regions, as the balance of our geographic mix provides resilience in a highly dynamic environment,” said Ermenegildo ‘Gildo’ Zegna, chairman and CEO of the Zegna Group.

Fibre2Fashion News Desk (DP)