Ermenegildo Zegna, the renowned Italian luxury menswear group, has experienced a remarkable surge in sales in 2021. The company recently went public on the prestigious New York Stock Exchange and achieved a turnover of €1.29 billion. Despite the challenges posed by the pandemic, Zegna is on track to reach its pre-pandemic level, with only a minor 2% decline compared to 2019.

In an exciting move towards sustainability, Zegna’s CEO Gildo Zegna announced that the fashion house will cease using real fur starting in 2023. This decision reflects the brand’s long-standing philosophy of creating high-quality products while respecting the natural world. Both the Zegna and Thom Browne brands under the Ermenegildo Zegna Group will no longer incorporate fur in their collections starting from 2022. Zegna fashion contributes to almost 66% of the group’s total revenues, while Thom Browne accounts for 20%.

Zegna’s strong performance in 2021 can be attributed to its success in the shoes and leisurewear departments. The brand achieved an impressive sales growth of 33%, reaching €847.3 million. Creative director Alessandro Sartori’s modernization of the brand’s classic pieces has appealed to a younger, more casual customer base.

The Ermenegildo Zegna Group’s other brand, Thom Browne, has achieved even more extraordinary financial results. Sales skyrocketed by 64% compared to 2019 and 47% compared to the previous year, amounting to €263.3 million. This growth has led to the expansion of Thom Browne’s monobrand stores from 28 in 2019 to 52 within just two years.

The group’s textile revenues also experienced significant double-digit growth of 17% (compared to -6% in 2019), reaching €102.2 million. However, sales in Japan declined by 10% due to a decrease in tourism and ongoing Covid-19 restrictions.

In terms of regional performance, the Ermenegildo Zegna Group saw a striking 46% rise in sales in North America, reaching €191.2 million. The United States specifically showed a strong performance with a 53% year-on-year increase. The Asia-Pacific region remains the group’s primary market, accounting for 54% of total revenues. Sales in this region reached a staggering €696.3 million, with the Greater China Region experiencing a particularly impressive growth rate of 34%. Zegna’s strong presence in China over the past three decades and the repatriation of domestic luxury goods spending have greatly contributed to this success.

In the EMEA region, which includes Europe, the Middle East, and Africa, sales increased by 20% to €380 million, indicating a clear recovery to pre-pandemic levels. The financial rebound in Italy and exceptional performance in the United Arab Emirates, particularly in the retail sector, were the main drivers of growth in this region.

The Ermenegildo Zegna Group has recognized the growing importance of the direct sales channel. In 2021, this channel accounted for 66% of total revenue, compared to 61% in 2019. The direct sales channel experienced an impressive 39% growth, while the wholesale channel saw a 14% increase. Zegna’s decision to prioritize the direct channel since 2019 has proven to be a successful strategy, evident in its robust growth and positive response from customers.

In conclusion, Ermenegildo Zegna’s remarkable sales growth in 2021 and progress towards its pre-pandemic level demonstrate its resilience and potential in the luxury menswear market. The company’s decision to discontinue the use of fur aligns with its commitment to sustainability and the environment. With its strong sales performance and expansion in various regions, the Ermenegildo Zegna Group is well-positioned for continued success.

Useful Links:
1. Ermenegildo Zegna to Stop Using Real Fur
2. Ermenegildo Zegna’s Journey to Sustainability