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Italian firm Ermenegildo Zegna's Q3 FY23 revenue soars 20.8%

25 Oct '23
3 min read
Pic: Tanya Keisha - stock.adobe.com
Pic: Tanya Keisha - stock.adobe.com

Insights

  • Ermenegildo Zegna Group reported a strong Q3 in fiscal 2023, with revenues surging to €431 million, a 20.8 per cent year-over-year increase.
  • The Zegna and Thom Browne segments showed steady growth, while the Tom Ford Fashion Segment made a significant contribution.
  • Sales channels including direct-to-consumer and wholesale both saw increases.
Ermenegildo Zegna Group has reported revenues of €431 million in the third quarter of fiscal 2023 (Q3 FY23), marking a year-over-year (YoY) increase of 20.8 per cent. On a constant currency basis, the growth was even more remarkable at 25 per cent, with organic growth pegged at 11.3 per cent. The company attributed much of this success to the strength of Zegna-branded products, particularly through the direct-to-consumer (DTC) channel.

In the Zegna segment, revenues amounted to €298 million for the third quarter, registering a 3 per cent increase YoY and a 6 per cent rise on a constant currency basis. The segment's organic growth rate was 12.7 per cent for the quarter, boosting the nine-month revenue to €950 million. This represents an increase of 12.7 per cent YoY and 14.1 per cent on a constant currency basis, the company said in a press release.

Thom Browne, another of Zegna's segments, reported third-quarter revenues of €74 million, up by 6.3 per cent YoY and 13.1 per cent on a constant currency basis. Revenues for the first nine months of FY23 for this segment reached €282 million, reflecting a 10.4 per cent increase YoY and 13.3 per cent on a constant currency basis.

Adding to Zegna Group's diversified revenue stream was the Tom Ford Fashion Segment. Operational since April 29, 2023, it reported third-quarter revenues of €75 million, thereby contributing €139 million since its inception.

As for the product lines, Zegna-branded products led the charge with €242 million in third-quarter revenues, marking an 8 per cent YoY increase. Thom Browne followed suit, registering €73 million in revenues and contributing nearly 30 per cent of this from its womenswear line. The textile business wasn't far behind, pulling in €35 million in the third quarter, a 17.2 per cent increase YoY. However, the revenues from third-party brands sagged, dwindling 86 per cent YoY to just €5 million.

Turning to sales channels, Zegna's DTC revenues reached €282 million in the third quarter, showing a robust 29.9 per cent increase YoY. The wholesale channel also showed promise with €148 million in third-quarter revenues, a 6.6 per cent increase YoY. On the geographical front, Zegna Group witnessed double-digit organic growth in key markets. In the EMEA region, revenues surged to €152 million, while North America pulled in €111 million, significantly boosted by €102 million in revenues from the US alone. The APAC region contributed €158 million, and Latin America brought in €8.4 million.

“Our results this quarter continue to showcase the broad-based strength of our three brands and the successful execution of our strategy. I am particularly pleased that we are performing well across a diverse set of regions, as the balance of our geographic mix provides resilience in a highly dynamic environment,” said Ermenegildo ‘Gildo’ Zegna, chairman and CEO of the Zegna Group.

Fibre2Fashion News Desk (DP)

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