For the first quarter of the current fiscal year 2022, the Italian luxury fashion house Ermenegildo Zegna NV – which owns the brands Zegna and Thom Browne – reports unaudited sales of 377.6 million euros. This corresponds to an increase of 25.4 percent compared to the previous year.
That performance was driven by a sustained upswing across the Zegna segment, the group said in a press statement. Sales of men’s brand Zegna rose 27.1 percent year-on-year to €283.5 million, with robust performance across all product lines, it said. Zegna branded products, which includes apparel, bags, shoes and leather goods, as well as licensed products and royalties, saw sales increase 22.1 percent year-on-year to EUR 224 million. The main reasons for this are the two main categories of luxury leisurewear and shoes as well as a strong upswing in the made-to-measure business.
The Thom Browne brand increased its sales by 22.3 percent year-on-year to 98.1 million euros, based on a good performance in the DTC and wholesale channels. Here the growth rate was higher for women than for men.
Thanks to the good demand, sales in the group’s textile division increased by 64.6 percent compared to the previous year to 30.2 million euros. In addition, there was an increase in sales of 56.8 percent in the Third-Party Brands division to EUR 24.4 million.
Growth was driven by strong North American business
Looking at the development by region, sales growth in North America rose by 85.1 percent to EUR 61.8 million compared to the previous year. Retail sales alone climbed there by 97.2 percent.
In Latin America, too, sales almost doubled thanks to strong Zegna brand DTC sales.
In the EMEA region, the group recorded sales growth of 38.9 percent to EUR 134.5 million, with above-average growth in the United Arab Emirates, Great Britain and France regions. APAC sales showed mixed trends, with the Greater China region weakening since March due to new COVID-related restrictions, reversing the positive trend seen through February. The rest of APAC (excluding the Greater China region) rebounded 27.8 percent year-on-year as many countries lifted COVID-19 restrictions.
Direct business increased by almost a quarter
Sales in the DTC channel increased 23.1 percent year-on-year to €218.1 million, with the Zegna Branded Products and Thom Browne businesses posting similar results. The increase in Zegna brand DTC sales – by 23.2 percent to 183.9 million euros – is due to a strong recovery in all regions, particularly in North America and Europe. Wholesale sales grew 31.4 percent year-on-year. Wholesale shipments to Russia are currently suspended and have historically not been a significant contributor to the group’s sales, the company says.
Ermenegildo ‘Gildo’ Zegna, Chairman and CEO of the Zegna Group, concluded: “The year 2022 got off to a good start and is now more challenging due to the combination of geopolitical, economic and public health uncertainties. Our two brands are coping well with these challenges rightly so, and we will continue to implement our strategic goals.”
The group expects revenue growth in the low teens and an improvement in adjusted EBIT for the current year.