The Italian fashion group Ermenegildo Zegna NV started the 2023 financial year with a significant increase in sales. Both core brand Zegna and menswear label Thom Browne posted double-digit gains in the first quarter, the company announced on Thursday.
According to preliminary figures, group sales reached EUR 428.3 million in the first three months of the year, exceeding the level of the same quarter of the previous year by 13.4 percent (currency-adjusted +13.1 percent). Adjusted for losses resulting from the termination of the previous license partnership with the Tom Ford brand, according to the company, sales even grew by 19.1 percent (currency-adjusted +18.9 percent). However, the group emphasized that a new, more extensive partnership with Tom Ford will begin in the coming months, which was agreed in the course of the planned takeover of the label by the cosmetics group The Estée Lauder Companies Inc.
Both divisions of the group of companies developed successfully. In the Zegna segment, sales grew by 12.6 percent (currency-adjusted +11.9 percent) to 319.3 million euros, Thom Browne was able to increase by 15.4 percent (currency-adjusted +16.1 percent) to 113.3 million euros.
The sharp increase in demand in Asia was the main reason for the significant increase in sales. In the entire Asia-Pacific region, consolidated sales rose by 17.4 percent (currency-adjusted +18.9 percent) to EUR 205.3 million compared to the same quarter of the previous year. In the EMEA region, which includes Europe, the Middle East and Africa, revenues increased by 11.6 percent (currency-adjusted +11.6 percent) to EUR 150.1 million, in North America by 6.2 percent (currency-adjusted +1 .8 percent) to 65.6 million euros and in Latin America by 19.6 percent (currency-adjusted +8.1 percent) to 6.8 million euros.