Zegna Revenues Increase 13.4 Percent With Broad-based Strength
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Ermenegildo Zegna Group carried its momentum from last year into the first quarter, when revenues advanced 13.4 percent 428.3 million euros.
The strength was broad-based across the Zegna and Thom Browne businesses. And excluding the impact of Tom Ford — where the company transitioned from a licensing deal to an exclusive supplier agreement — the firm’s first-quarter revenues increased 19.1 percent.
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Chairman and chief executive officer Gildo Zegna said: “We started 2023 with an encouraging upswing led by further reopening in the Greater China Region following COVID-19-related restrictions. We also saw robust growth across our business in the United States and Europe driven by our own retail. For Zegna, growth was driven by a healthy increase in productivity, which is one of our strategic priorities. This ongoing strength underscores the success of both our brands as well as the value of our vertically integrated Luxury Textile Platform, which has allowed us to scale up our internal manufacturing and production capabilities.”
Revenues in Greater China grew 15.9 percent to 164.5 million euros, while Europe, the Middle East and Africa saw an 11.6 percent gain to 150.1 million euros, and North America grew 6.2 percent to $65.6 million after being particularly hard hit by the Tom Ford transition.
Zegna-branded products led the way higher in the quarter with revenues up 21.4 percent to 271.9 million euros.
“The successful Zegna rebranding has further embedded the brand as a front-runner in the luxury market, and a leader in ‘quiet luxury,’” the CEO said.
The brand has also been looking to project out its brand message with collaborations and campaigns, including tie-ups with Canadian technical trail-running shoe firm Norda Run, the Los Angeles-based The Elder Statesman, and Real Madrid, for travel wear.
Meanwhile, Thom Browne’s revenues increased 14.9 percent to 112.6 million euros.
To keep evolving, the company recently launched the Zegna X digital ecosystem, which seeks to reduce the gap between its physical stores and digital channels.
Zegna knows he has to keep on his toes given the tricky macroeconomic scene, but is pressing on with the company’s strategic plans.
“We remain mindful of the ever-changing global environment,” Zegna said. “As the year progresses, we continue to relentlessly execute Our Road strategy to achieve our medium-term ambitions. Last but not least, we look forward to completing the Tom Ford Fashion business transaction alongside the Estée Lauder Cos., which we anticipate to close in the second quarter and start operating the business under a long-term licensing agreement with The Estée Lauder Cos.”
The beauty giant agreed to buy Tom Ford in November, valuing the enterprise at $2.8 billion.
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