Owner of the Zegna and Thom Browne labels Ermenegildo Zegna, reported unaudited first-quarter revenues of € 428.3 million, up 13.4 per cent and 13.1 per cent at constant currency.
Without the effect of Tom Ford products, revenues increased by 19.1 per cent and by 18.9 per cent in constant currency.
Commenting on the update, Ermenegildo Zegna, chairman and CEO of the Zegna Group, 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.”
The Zegna segment’s revenue for the first quarter of 2023 was € 319.3 million. Thom Browne’s sales totaled € 113.3 million, and the brand is still expanding across all channels. Strong revenue growth in womenswear and childrenswear throughout the quarter outpaced growth in menswear.
Revenues from textiles totaled € 33.8 million, an increase of 11.8 per cent, demonstrating overall strength for the group’s luxury textile platform. The fall/winter 2022 season deliveries last year were the last under the Tom Ford International distribution licensing arrangement, which had a detrimental impact on third-party brands. This led to revenues of € 8.9 million in the first quarter, a 63.5 per cent decline.
Zegna and Thom Browne both saw a DTC revenue growth of the group of 24.9 per cent in the first quarter. Comparatively to the same period previous year, DTC accounted for 64 per cent of revenues in the first quarter.
Zegna’s DTC sales increased by 24.8 per cent to € 229.6 million, with double-digit growth in every region. Thom Browne’s DTC sales were € 42.8 million, up 25.4 per cent from the first quarter of last year. This rise was attributed to comparable store growth and the establishment of net 11 stores globally, bringing the company’s total number of locations to 62 as of March 31, 2023.
The group’s objectives for the end of the fiscal year 2025 include yearly revenues of more than € 2 billion and an adjusted EBIT margin of at least 15 per cent, excluding the Tom Ford Fashion business.
