Ermenegildo Zegna Group Reports 20.8% Growth in First-half Sales

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MILAN — A strong performance in the U.S., Western Europe and the United Arab Emirates helped the Ermenegildo Zegna Group report 20.8 percent growth in the first half.

In the six months ended June 30, revenues amounted to 729 million euros, compared with 603.3 million euros in the same period last year. This was achieved despite the ongoing macroeconomic and geopolitical instability, and the impact of COVID-19 related measures in the Greater China region.

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In the second quarter of 2022, sales rose 16 percent to 351.4 million euros.

The Zegna brand showed continued growth, as revenues increased 19 percent to 553 million euros, up from 466 million euros last year, a result of the repositioning of the brand. Shoes and luxury leisurewear continued to perform strongly, while tailoring and Made to Measure have rebounded.

Thom Browne sales climbed 30 percent, reaching 185.8 million euros, compared with 142.5 million euros last year, boosted by growth across all lines, and particularly womenswear, and to the rollout of e-commerce through Tmall in the Greater China region, which was launched in the second half of 2021.

Chairman and chief executive officer Gildo Zegna expressed his pride in the growth of the company and said the goal is to continue to focus on the Zegna One Brand, which launched in July; “to achieve Thom Browne’s full potential, seeking to double revenues by expanding the number of [end] clients,” and to “further strengthen our one-of-a-kind Made in Italy Luxury Textile Laboratory Platform, which is currently seeing sustained levels of production benefiting from healthy orders flows.”

Revenues in the Greater China region amounted to 247.2 million euros in the first half of 2022, down 14 percent compared with the same period last year, dented by the temporary store closures and lower customer traffic due to restrictions in major cities across the region.

However, direct-to-consumer revenues in the Greater China region for the month of June 2022 increased compared to June 2021, due to the significant increase in e-commerce sales for both the Zegna and Thom Browne segments, and a rebound in sales at directly operated stores, following the relaxation of COVID-19-related restrictions. In particular, Thom Browne direct-to-consumer revenues rebounded by double digits compared to June 2021 as a result of strong e-commerce sales and the additional contribution from three new net store openings.

Revenues in the rest of the world amounted to 481.8 million euros in the first half, up 53 percent. The second quarter showed an acceleration with a 59 percent rise, up from 48 percent in the first quarter of the year.

This increase was mainly driven by a 91 percent bump in revenues in the U.S., reaching 124.3 million euros; a 43 percent increase in revenues from the EMEA region to reach 260.6 million euros, and a strong performance in Japan and the rest of Asia.

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