Ermenegildo Zegna Group is finishing the year on a positive note. The Italian firm specialising in very high-end clothing, which is listed on the New York Stock Exchange, expects sales growth of 27.6 per cent in 2023 to €1.9 billion.
The luxury goods business may take pleasure in having surpassed LVMH, whose Fashion & Leather Goods segment increased 9 per cent year on year in 2023, with organic growth of 14 per cent to € 42.16 billion, demonstrating the soundness of its strategy.
The Italian firm profited in particular from a record fourth quarter, with revenues increasing by 40.1 per cent to € 570.3 million, compared to a 20.8 per cent growth in the third quarter of 2023.
The Zegna sector, which also comprises the group’s textile business, had revenues of € 1.322 billion last year, an increase of 12.4 per cent , with sales rising by 15.2 per cent in the fourth quarter.
The Zegna brand, led by designer Alessandro Sartori, achieved revenues of €1.1 billion , owing in large part to the attractiveness of its high-end leisurewear, which now accounts for 50 per cent of total sales.
Meanwhile, its American label Thom Browne had sales of € 380 million in 2023, with € 183.4 million coming from its direct sales network. Sales increased by 30.2 per cent in the prior quarter. This high increase is attributed to the brand’s strategy of increasing its direct sales channel, as well as its concentration on women’s clothes, which continues to rise and now accounts for 30 per cent of overall revenue, according to the firm.
Tom Ford reported revenues of € 235.5 million. The Piedmont-based group’s textile sector also did well, growing 10.4 per cent to € 150.9 million.
According to the reports, CEO Gildo Zegna was especially happy with “the continued growth in the EMEA region, the strong performance in the United States, driven by Zegna’s direct-to-consumer channel, and the recovery in China”. In 2023, Ermenegildo Zegna Group sales increased by 41.6 per cent in North America to € 417.3 million, 26.6 per cent in EMEA to € 658.7 million, and 22.2 per cent in Asia-Pacific, with a 20.5 per cent growth in Greater China alone to € 595.5 million.
