Italy's Ermenegildo Zegna's revenue grows 23.9% in H1 FY23

Zegna segment reported revenues of €332 million in Q2 FY23, up by 23.4 per cent YoY. Organic growth in this sector was 28.2 per cent. The Thom Browne segment saw an 8.1 per cent YoY growth, hitting €95 million for Q2 FY23. This growth was primarily driven by strong direct-to-consumer performance and the addition of 13 net new stores since June 2022, the company said in a press release.

Zegna-branded products recorded €269 million in revenue for Q2 FY23, up 33.9 per cent YoY, while Thom Browne reported revenues of €94 million, marking an 8.2 per cent YoY growth. Textile revenues remained constant at €39 million, while third-party brands saw a decline of 71.4 per cent YoY, due to the termination of the Tom Ford International distribution license.

Robust growth was observed in the direct-to-consumer channel across both Zegna and Thom Browne, reporting YoY growth of 32.7 per cent and 25.3 per cent respectively in Q2 FY23. However, the Thom Browne segment's wholesale activity was down 1.7 per cent YoY.

Geographically, the group saw growth across all regions. Greater China Region led the way with revenues of €142 million in Q2 FY23, up 35.3 per cent YoY. EMEA region revenues were at €173 million in Q2 FY23, up 36.8 per cent YoY, with the UAE performing well. US revenues stood at €99 million in Q2 FY23, a 46.5 per cent YoY increase. Latin America also showed an upward trend with a 30.7 per cent YoY increase in Q2 FY23.

“I am particularly pleased that we are gaining market share, and I am confident about the strong opportunities ahead as the menswear segment grows globally with both existing and new audiences. The strong execution of the One Brand strategy has made Zegna a global favourite, with successful collections which include staple luxury leisurewear items and our signature Triple Stitch sneaker. At Thom Browne, the work being done to strengthen womenswear continues to show great progress and the category is now outpacing the growth of menswear. The group’s financial progress underpins our confidence that we are comfortably on track to meet our previously announced 2025 financial ambitions,” said Ermenegildo ‘Gildo’ Zegna, chairman and CEO of the Zegna Group.

Fibre2Fashion News Desk (DP)