Zegna Doubles Profit, Reaches 135 Million Euros in 2023

Fashnopsis:

• Surge in Sales: Zegna Reports 27% Growth, Reaching 1.9 Billion Euros
• Profits Skyrocket: Zegna’s Profits Skyrocket, Doubles to 135.7 Million Euros in 2023
• US Market Boosts Zegna’s Success: Sales Jump by 42.3%
• EMEA and APAC Markets Drive Growth: Zegna Expands Reach
• CEO Credits Strategy: Retail Expansion and Cost Efficiency Lead to Record Profits
• Thom Browne Segment Thrives: Achieves 14.9% Growth to 380 Million Euros
• Tom Ford Acquisition Pays Off: Contributes 235 Million Dollars to Zegna’s Sales

Italian luxury fashion group Zegna has seen a remarkable increase in profitability, with its net profit soaring to 135.7 million euros in 2023, more than double the 65.2 million euros recorded in 2022.

Additionally, the company’s profit margin for the year rose to 7.1%, marking a nearly three-percentage-point increase compared to the previous year.

The surge in profits correlates with a significant uptick in sales, which reached 1.9 billion euros, reflecting a remarkable 27% growth compared to the preceding year. Notably, the US market played a pivotal role in this growth, generating sales of 385 million euros, a substantial 42.3% increase.

In the Europe, Middle East, and Africa (EMEA) region, Zegna saw sales of 184 million euros, marking a 30.9% increase, while sales in Asia and the Pacific (APAC) reached 788 million euros, with a growth rate of 23.7%. Particularly noteworthy is China’s contribution, accounting for 596 million euros of the APAC sales.

Ermenegildo Zegna, the company’s CEO, hailed 2023 as a pivotal year, attributing the exceptional results to three key factors: the growth in retail sales, a reduction in end-of-season sales, and increased absorption of industrial costs.

Breaking down sales by brand, Zegna recorded sales worth 1.322 billion euros, a growth of 12.4% compared to the previous year. Notably, Thom Browne, a significant segment for the group, achieved a turnover of 380 million euros, marking a 14.9% growth.

Additionally, the inclusion of Tom Ford’s sales, following its acquisition earlier in the year, contributed to the impressive results. Tom Ford recorded sales of 235 million dollars throughout the year, further bolstering Zegna’s position in the luxury fashion market.

Image Credits: Modaes