Zegna Group accelerates in Q4 and closes 2023 on 27.6% growth

Ermenegildo Zegna Group is ending the year on a high. The Italian group specialising in very high-end menswear, which is listed on the New York Stock Exchange, is forecasting sales growth of 27.6% in 2023 (+19.3% on an organic basis) to €1.9 billion, as announced on the publication of its preliminary annual results. Its flagship brand Zegna and its Thom Browne label both recorded double-digit increases, with growth in all regions.

 
The luxury goods group can pride itself on having outperformed LVMH, whose Fashion & Leather Goods division grew 9% year-on-year in 2023, with organic growth of 14% to €42.16 billion, confirming the strength of its model. The Italian company benefited in particular from a record fourth quarter, with sales soaring by 40.1% to 570.3 million euros (+42.9% at constant exchange rates and +19.6% on an organic basis), compared with an increase of 20.8% in the third quarter of 2023 (+11.3% on an organic basis).
 
The Zegna segment, which also includes the group’s textile business, recorded sales of €1.322 billion last year, up 12.4% (+13.8% at constant exchange rates and +19.5% on an organic basis), while its sales rose by 15.2% in the fourth quarter.  

The Zegna brand alone, headed by designer Alessandro Sartori, achieved sales of €1.1 billion (+20.1%), thanks in particular to the appeal of its top-of-the-range leisurewear, which now accounts for 50% of its total sales. Footwear also outperformed, accounting for 13% of the brand’s total revenues. The brand’s direct sales climbed by 22.4% to €945.3 million in 2023, more than offsetting the single-digit rise (+8.4%) in sales through the wholesale network, which were penalized by a delay in deliveries.
 
It was a particularly busy year for the brand, which has just renewed its licensing agreement with eyewear manufacturer Marcolin until the end of 2030, for the design, production and distribution of its line of prescription and sunglasses launched with the same partner in 2015. It has also taken over direct distribution in South Korea and changed partners for its beauty licence (fragrances and cosmetics), leaving Estée Lauder for the Italian group Give Back Beauty.
 
Meanwhile, its American label Thom Browne achieved sales of €380 million (+14.9%) in 2023, of which €183.4 million came from its direct sales network (+25.9%). Sales jumped by 30.2% in the last quarter. This strong growth is due to the brand’s strategy of expanding its direct sales channel, as well as its focus on women’s clothing, which continues to grow and now accounts for 30% of the brand’s total revenues, the company points out.

 
Tom Ford posted sales of 235.5 million euros. The Piedmont-based group’s textile business also performed well, posting a 10.4% increase to €150.9 million.
 
In the press release, CEO Gildo Zegna was particularly pleased with “the continued growth in the EMEA region, the strong performance in the United States, driven by Zegna’s direct-to-consumer channel, and the recovery in China”. In 2023, Ermenegildo Zegna Group sales jumped by 41.6% in North America, to €417.3 million, by 26.6% in EMEA, to €658.7 million, and by 22.2% in Asia-Pacific, with a 20.5% increase in Greater China alone, with sales of €595.5 million.