Ermenegildo Zegna: drop in sales and net income in 2014
Ermenegildo Zegna lost some ground in 2014. The Italian menswear group specialised in luxury was a victim of the global financial situation in 2014 but is nevertheless continuing with its expansion
The group's net income amounted to 71 million euros in 2014, compared to 116.3 million a year prior, thus falling by 28.1%, and an EBITDA of 185 million euros compared to 256.8 million in 2013 (-28%), it announced in a press release with the publication of its annual results.
The specialist in luxury menswear was notably penalised last year by "heavy tax burdens". The considerable amounts invested in the relaunch of the women's ready-to-wear brand Agnona, under the creative direction of Stefano Pilati, "also had a major impact on the operating result," stated the house.
In addition, Ermenegildo Zegna invested nearly 20 million euros in its production chain and factories last year by reinforcing the control of its network all while completing its production reorganisation process, which it had already invested 100 million euros in in 2013.
For 2014, the group has posted 1.21 billion euros in revenue, recording a 4.7% decrease compared to 2013, nearly 90% of which came from exports. China remains the biggest market, followed by the United States.
The drop in revenue can be attributed to an unfavourable economic context, "with, in particular, a lower demand for menswear in China and Russia, but also due to a strong euro compared to the dollar and the Yuan for a large part of 2014," Zegna also pointed out.
At the end of 2014, the label had 525 monobrand stores, including 298 wholly-owned stores. Meanwhile, in 2013 it had 546 monobrand stores, with 312 wholly-owned.
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