The fourth quarter (Q4) of FY23 was particularly strong for Ermenegildo Zegna, with revenue reaching €570 million, up 40.1 percent year-on-year and 42.9 percent in constant currency, and a organic growth of 19.6 percent, the company said. in a press release.
Italian company Ermenegildo Zegna Group's FY23 revenue reached €1.9 billion, up 27.6 percent year-on-year, boosted by a strong fourth quarter at €570 million. The Zegna segment grew to 1,322 million euros and that of Thom Browne to 380 million euros. DTC revenues reached 1,265 million euros, 66.4 percent of total sales. Growth was strong in all regions, with North America leading the way.
In the Zegna segment, annual revenues amounted to 1,322 million euros, an increase of 12.4 percent year-on-year and 13.8 percent in constant currency, with organic growth of 19.5 percent. Fourth-quarter revenue was €385 million, reflecting an increase of 15.2 percent year-on-year and 17.0 percent in constant currency.
The Thom Browne segment recorded annual revenues of €380 million, an increase of 14.9 percent year-on-year and 18.3 percent at constant exchange rates. Organic growth for the year was 17.8 percent. Thom Browne's fourth quarter revenue amounted to €99 million.
The Tom Ford Fashion segment, since its consolidation on April 29, 2023, reported revenue of €236 million for the full year, with €97 million recognized in the fourth quarter, demonstrating strong performance during the Christmas season.
Revenue from Zegna brand products amounted to €1,109 million for the full year, a year-on-year increase of 20.1 percent. Revenue from the Thom Browne product line amounted to €378 million, a year-on-year increase of 14.7 percent. The textile product line, especially supported by Lanificio Zegna, recorded revenue of 151 million euros, a year-on-year increase of 10.4 percent. However, revenue from third-party brands decreased significantly due to the end of Tom Ford International's distribution licensing agreement.
Direct-to-consumer (DTC) revenue amounted to €1,265 million for the full year, representing 66.4 percent of Group revenue, up from 61.5 percent in fiscal 2022. Wholesale revenue For the entire year they were 635 million euros, an 11.3 percentage increase year-on-year.
Zegna experienced strong growth across all key geographies, with North America showing the most significant growth, supported by the consolidation of Tom Ford Fashion. Europe, the Middle East and Africa (EMEA), Asia-Pacific (APAC) and Latin America recorded double-digit growth in revenue: EMEA recorded €659 million, APAC €788 million and Latin America €38 million for the Whole year.
“The significant increase in our revenue in 2023, and especially from our network of directly operated stores, is a clear indication that demand for our brands remains healthy and that we are successfully executing our strategy to increase their appeal and solidify their position as leaders. in the luxury market. “The continued improvement in productivity of the Zegna brand, in particular, is a testament to the strength of our execution, supported by our successful merchandising and CRM,” he said. Ermenegildo 'Gildo; Zegna, President and CEO of the Zegna Group.
Fiber2Fashion News Desk (DP)
