The Italian fashion group Ermenegildo Zegna NV exceeded expectations in the 2021 financial year. On Wednesday, the company reported a strong increase in sales. The fact that the bottom line was in the red was due to one-off charges in connection with the IPO, which was completed at the end of last year. Management expects further growth in 2022.
Last year, the Ermenegildo Zegna Group generated sales of EUR 1.29 billion, exceeding the 2020 level by 27 percent. The revenues of the core brand Zegna increased by 23 percent to around 1.03 billion euros, the label Thom Browne increased by 47 percent to 264 million euros.
At the operational level, the Group was able to significantly improve its earnings: Earnings before interest and taxes (EBIT), adjusted for special effects, jumped from EUR 20 million to EUR 149.1 million, exceeding expectations. However, the net loss rose from 46.5 to 127.7 million euros. The deficit attributable to the shareholders grew from 50.6 to 136.0 million euros.
The company emphasized that it had to book one-off charges totaling around 205 million euros in 2021 in the course of the IPO. Adjusted for all special factors, the net profit amounted to 75.3 million euros, after a corresponding loss of 4.75 million euros had been reported in the previous year.
Despite numerous “geopolitical uncertainties”, the fashion house is aiming for further growth in 2022. In terms of sales, it forecasts a percentage increase “in the low teens”. Management also expects a “further improvement” in adjusted EBIT.