Retail in Asia

In Sectors

Zegna annual profit doubles on strong sales growth, APAC jumps 22 percent

Ermenegildo Zegna Group said full-year 2023 revenues surged 27.6 percent to EUR 1.9 billion, on the back of double-digit growth across all brands and markets.

SEE ALSO: Zegna fourth-quarter sales surge 40 percent as Greater China rebounds

The owner of the Zegna, Tom Ford Fashion and Thom Browne brands, said annual profit skyrocketed 107.8 percent EUR 135.7 million for 2023, with a profit margin of 7.1 percent.

By brand, Zegna rose 12.4 percent, and Thom Browne gained 14.9 percent. The group’s revenues also included EUR 235.5 million contributed by the Tom Ford Fashion segment following the acquisition of Tom Ford International, completed on April 28, 2023, said the Italian luxury group.

By market, Asia-Pacific revenues jumped 22.2 percent to EUR 788 million. Within this, Greater China sales increased 20.5 percent to EUR 596 million, while Japan sales grew 29.9 percent to EUR 85 million.

“We delivered outstanding results, including more than doubling our profit from 2022 to reach €136 million. We have also fulfilled our 2023 sustainability commitments including those focused on traceability, diversity and inclusion, and in renewable energy adoption. We are on track with the integration of the Tom Ford Fashion business, which is enriching our unique proposition in luxury glamour,” said Ermenegildo ‘Gildo’ Zegna, the group’s chairman and CEO.

“As a group, we continued to invest in our Filiera, our in-house supply chain, which includes some of the finest and most important Italian high-end textile producers fully integrated with our unique luxury manufacturing capabilities. We recently announced the latest addition to the Filiera, a new state-of-the-art footwear and leather goods production facility in Parma, Italy, expected to be completed by the end of 2026.”

With several the major luxury fashion groups posting annual trading updates in recent months, 2023 was pilorising for the luxury industry, with main players LVMH, Hermès, Tod’s, and Prada, in addition to Zegna, revealing solid sales growth for the year.

Contrastingly, rivals Kering and Burberry announced a drop in sales in fiscal 2023, citing a softening in demand for their respective luxury wares during the twelve months.