Italian firm Ermenegildo Zegna reports profit of €65.3 mn in FY22

The company’s revenues were €1,492.8 million in FY22, which is a 16-per cent increase from the previous year. The Zegna segment, which is the brand's flagship division, saw a 14-per cent year-over-year (YoY) increase in revenues, totalling €1,176.7 million. Meanwhile, the Thom Browne segment reported a 25-per cent increase in revenues, amounting to €330.9 million, the company said in a press release.

Adjusted EBIT (earnings before interest and taxes) for the group increased by 6 per cent in FY22 to €157.7 million, up from €149.1 million in FY21. However, the adjusted EBIT margin decreased by 90 basis points from 11.5 per cent in FY21 to 10.6 per cent in FY22.

The Zegna segment's adjusted EBIT was €141.5 million in FY22, a 7-per cent increase YoY. The segment's adjusted EBIT margin was 12.0 per cent, compared to 12.7 per cent in FY21. For the Thom Browne segment, adjusted EBIT was €48.1 million in FY22, a 26-per cent increase YoY. The segment's adjusted EBIT margin was 14.5 per cent, up from 14.4 per cent in FY21.

In FY22, the company progressed on its environmental, social, and governance (ESG) commitments made in May 2022, including submitting the group’s net-zero targets to the Science-Based Target initiative (SBTi), the release added.

By the end of fiscal 2025, the Ermenegildo Zegna aims to exceed annual revenues of €2 billion and achieve an adjusted EBIT margin of at least 15 per cent, excluding the Tom Ford fashion business. The group expects FY23 results to show that it is on track to achieve these goals, assuming no further escalation of the war in Ukraine, no significant macroeconomic or financial markets deterioration, no further disruption linked to the COVID-19 pandemic, and no other unforeseen events. For the first quarter of FY23, the company expects double digit revenue growth.

Ermenegildo ‘Gildo’ Zegna, chairman and CEO of the Zegna Group, said: “Last year, we embarked on a journey of rebranding our namesake label, as we unveiled the Zegna One Brand. We are still at the beginning of this journey, having just launched the second season and a number of new initiatives.

“2023 is off to an encouraging start, with solid double-digit performance in the Group’s retail network, and I am optimistic that the reopening of the Greater China Region following COVID-19-related restrictions, together with the positive response to our collections we are seeing from our customers worldwide, will continue to drive the growth of our global business. However, it is important to acknowledge that current financial uncertainties and an ever-changing global environment have the potential to affect consumer attitudes and buying patterns.”

Fibre2Fashion News Desk (DP)