Oct 29, 2022
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Zegna, Thom Browne sales surge on Europe, the U.S. and Middle East growth

Oct 29, 2022

Italy's Zegna Group announced on Friday revenues for its recently ended third quarter surged 27.5%, on the back of growth across all geographies for Zegna and Thom Browne, particularly in Europe, the U.S., and the Middle East.

Ermenegildo Zegna - Spring-Summer 2023 - Menswear - Milan - © PixelFormula

The Milan-based company ​posted third-quarter revenues of €357 million, bringing revenues for the first nine months of the year to €1.09 billion, up 22.9% year-over-year.

By segment, Zegna, which includes Zegna branded products as well as the textile and third-party brands product lines, continued to show "robust growth," with revenues for the third quarter totalling €289 million, up 27.2% year-over-year.

Zegna branded products revenues grew 18.6% year-over-year, reaching €224 million for the quarter ending September 30, while textile revenues for the quarter reached €30 million, up 33.3%, with growth across Lanificio Ermenegildo Zegna, Bonotto, and Dondi. Third-Party brands revenues grew 64.2%, reaching €32 million, thanks to strong contributions from Tom Ford and Gucci, the latter having more than doubled, compared to the prior-year quarter.

Likewise, Thom Browne continued to be a "significant growth driver for the group," with revenues for the quarter reaching €69 million, up 29.5% year-over-year. Womenswear continued to grow faster than menswear, and now accounts for almost 30% of the U.S. brand’s revenues.

Growth across the Thom Browne brand was held up by strong wholesale demand; e-commerce growth through T-Mall in the Greater China region, and four new store openings during the quarter. 

By geographic region, Zegna Group revenues in the Greater China region amounted to €116 million for the quarter, up 3% year-over-year;  APAC was up 13.7% for the quarter, with revenues reaching €153 million; and the EMEA region clocked the strongest growth for the quarter, up 42.8% to reach €119 million. Of that, €16 million came from the Middle East and Africa region, for 86.4% growth year-over-year. The UK also continued to grow, with revenues for the quarter up 61.6% year-over-year to €15 million.

By distribution channel, revenues from the group’s directly operated store network, including e-commerce, were €217 million for the quarter, up 20.7%, while wholesale revenues grew 32.2% to reach €139 million.

“This quarter was one of our strongest yet thanks to exceptional performance by both Zegna and Thom Browne in Europe, the Middle East, and the U.S., as well as a rebound in the Greater China Region. We achieved a number of milestones this quarter as we continue to execute on our strategy and commitments while remaining true to the values that have guided us for 112 years" said ​Ermenegildo “Gildo” Zegna, chairman and CEO, Zegna Group.

“As always, caring for the natural world around us continues to be a bedrock of everything we do. Last month, we launched Oasi Cashmere, a significant step on our road to traceability. I am also very proud that Oasi Zegna, which is promoted by Zegna Group, received this year’s Biodiversity Conservation Award at the CNMI (Camera Nazionale della Moda Italiana) Sustainable Fashion Awards."

Looking ahead, the group confirmed its full-year revenue guidance of mid-teens growth.

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