Ermenegildo Zegna, the renowned Italian group known for its high-end men’s clothing, experienced a slowdown in performance in 2022 primarily due to the measures implemented in China to combat the spread of Covid-19. Preliminary results showed that the company reported revenues of €1.49 billion, which marked a 15.5% increase compared to 2021 (or 11% at constant exchange rates). However, in the fourth quarter, sales dipped by 0.5% (-2.9% at constant exchange rates) and amounted to €407 million.

The impact of Covid-related restrictions in China was significant throughout 2022, especially from mid-March to the end of May and again in the fourth quarter, causing a considerable decline in the brand’s performance. Ermenegildo Zegna stated that if the results from the Greater China region were excluded, revenues would have actually increased by 42% for the entire 2022 financial year and by 24.7% in the fourth quarter.

Despite these challenges, Ermenegildo “Gildo” Zegna, the CEO of the group, remains optimistic about the company’s growth. Zegna believes that the 2022 results demonstrate the strength and success of their strategy, citing continued success in the Middle East, the US, and Europe. He also expressed confidence in the potential for recovery in China based on his recent trip to the country, noting positive trends in their business and the industry as a whole.

Under the leadership of Alessandro Sartori, the Zegna brand achieved a turnover of €924 million in 2022, fueled by the success of its high-end leisurewear and footwear ranges, as well as its made-to-measure business, particularly in the United States and Europe. The Zegna segment, encompassing not only Zegna brand products but also the group’s textile product line and third-party brands, generated €1.17 billion in 2022. Another brand owned by the group, Thom Browne, experienced a significant increase in sales, with a turnover of €330 million, marking a 25.3% growth compared to the previous year.

Looking ahead, Ermenegildo Zegna Group anticipates a slight improvement in its operating result for 2022. The company remains committed to its long-term objectives, aiming to achieve an operating margin of at least 15% and a turnover of €2 billion. To strengthen its position in the luxury market, the group has recently undertaken strategic moves. It acquired a minority stake in the Canadian technical running shoe company Norda Run and signed a long-term license agreement with Estée Lauder to manage the fashion activities of Tom Ford, which was acquired by the cosmetics giant.

Overall, despite the challenges faced in 2022, Ermenegildo Zegna remains determined to continue its growth trajectory and solidify its position as a prominent player in the luxury market.

Links related to the article:
Ermenegildo Zegna Official Website
Thom Browne Official Website