The Ermenegildo Zegna Group, a prominent Italian luxury menswear group, has achieved an impressive finish to 2023 by announcing forecasted sales growth of 27.6% for the year. This growth, which amounts to €1.9 billion in revenue, was driven by the success of both the Zegna and Thom Browne brands, with double-digit increases in sales seen across all regions.

Interestingly, Zegna Group’s success outperformed that of LVMH’s Fashion & Leather Goods division, which only achieved a 9% year-on-year growth. This demonstrates the strength of Zegna’s business model in comparison to other luxury brands.

The fourth quarter played a significant role in Zegna Group’s overall growth, with sales during this period increasing by 40.1% to €570.3 million. This performance exceeded the growth seen in the third quarter and contributed to the company’s record-breaking year.

Within the Zegna segment, which includes the group’s textile business, sales increased by 12.4% to €1.322 billion. The Zegna brand alone achieved sales of €1.1 billion, with a remarkable 20.1% growth in 2023. This success can be attributed to the popularity of high-end leisurewear, which now accounts for 50% of total sales, and footwear, which contributes 13% to the brand’s revenues.

The Zegna brand also made significant moves in 2023, renewing its licensing agreement with eyewear manufacturer Marcolin until 2030 and taking over direct distribution in South Korea. The brand also transitioned its beauty license from Estée Lauder to the Italian group Give Back Beauty.

Thom Browne, the American label under the Zegna Group, achieved sales of €380 million in 2023, experiencing a growth of 14.9%. The brand’s focus on expanding its direct sales channel and its emphasis on women’s clothing, which now contributes 30% to total revenues, have contributed to its strong growth.

Gildo Zegna, the CEO of Ermenegildo Zegna Group, expressed his satisfaction with the company’s performance, particularly highlighting the growth in the EMEA region and the strong performance in the United States. He also noted the recovery in China. North America saw impressive sales growth of 41.6% to €417.3 million, while EMEA experienced growth of 26.6% to reach €658.7 million. The Asia-Pacific region observed a growth of 22.2% with a significant increase of 20.5% in Greater China alone.

With a successful end to 2023, the Ermenegildo Zegna Group is well-positioned for further growth and success in the luxury menswear market.

Links:
Zegna Official Website
Thom Browne Official Website