The Italian clothing group Ermenegildo Zegna NV met its own sales expectations in the 2022 financial year despite problems in China caused by the pandemic. According to preliminary figures, sales last year reached 1.49 billion euros, exceeding the 2021 level by 15.5 percent, the parent company of the Zegna and Thom Browne brands said on Wednesday. Adjusted for exchange rate changes, the growth rate was 11.0 percent.
In the fourth quarter, however, the company had to accept a slight drop in sales. Compared to the same period of the previous year, revenues fell by 0.5 percent (currency-adjusted -2.9 percent) to 407.0 million euros. This was caused by sensitive losses in China: Due to the tightened protective measures against the Covid 19 pandemic, quarterly sales there fell by 30.3 percent (currency-adjusted -30.8 percent) to 130.7 million euros. In the other global market regions, however, the Group was able to continue to achieve strong growth.
In the financial year as a whole, the Zegna brand increased its sales by 9.0 percent (currency-adjusted +4.1 percent) to 923.9 million euros. The Thom Browne label developed even more dynamically, with sales increasing by 25.3 percent (currency-adjusted +20.6 percent) to EUR 330.0 million.
With the exception of China, all regions achieved strong growth last year. In the EMEA region, which includes Europe, the Middle East and Africa, consolidated sales increased by 36.8 percent (currency-adjusted +36.2 percent) to EUR 520.2 million, in North America by 54.1 percent (currency-adjusted +43, 2 percent) to EUR 294.7 million and in Latin America by 49.7 percent (currency-adjusted +33.4 percent) to EUR 29.9 million.
In the entire Asia-Pacific region, on the other hand, sales slipped by 7.4 percent (currency-adjusted -11.6 percent) to 644.8 million euros, because in China they fell by 16.1 percent (currency-adjusted -20 .6 percent) below the previous year’s level.