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

Zegna Group announced revenues for the full-year 2023 increased 27.6 percent EUR 1.9 billion (USD 2.05 billion), thanks to double-digit growth across all channels and regions, with a rebound in sales across Greater China during the fourth quarter.

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The owner of Zegna and Thom Browne said total sales for the fourth quarter surged forward 40.1 percent to EUR 570 million. Zegna’s Asia-Pacific region totalled EUR 788 million, up 22.2 percent in 2023, with the region’s largest market Greater China registering sales of EUR 596 million, up 20.5 percent. Japan also showed “significant growth,” with revenues of EUR 85 million, up 29.9 percent for the 12 months.

For the fourth quarter, APAC revenues were EUR 241 million, up 39 percent, with the Greater China region surging 35 percent to EUR 176 million. The Chinese market witnessed a strong rebound in the quarter, after a minimal 3.4 percent increase in the third quarter, thanks to the ‘Zegna One Brand’ strategy execution and the adverse impact of Covid-19-related restrictions in the same quarter last year. Revenues from Japan came in at EUR 26 million, up 27 percent, during the quarter.

By brand, Zegna global revenues for the year amounted to EUR 1.3 billion, up 12.4 percent, or up 15.2 percent for the fourth quarter, while the Thom Browne segment amounted to EUR 380 million, up 14.9 percent for the full year, or up 30.2 percent for the fourth quarter.

Finally, Tom ford fashion sales came in at EUR 236 million, of which EUR 97 million was recognized in the fourth quarter of the year, “reflecting [a] strong performance during the holiday season,” said the Italian luxury group in statement.

“I am very proud of the group’s success over the past year, which is demonstrated by our strong and continued revenues growth. The significant increase in our revenues in 2023, and especially from our network of directly operated stores, is a clear indication that demand for our brands remains healthy, and that we are successfully executing our strategy to increase their desirability and solidify their position as leaders in the luxury market,” Ermenegildo ‘Gildo’ Zegna, chairman and CEO of the Zegna Group.

“The continuing improvement in the Zegna brand productivity, in particular, is a testament to the strength of our execution, supported by our successful merchandising and CRM. Our integrated supply chain benefits all three of our brands and drives Zegna’s leadership in made-to-measure and product customization. We are focused on further enhancing our made-to-measure and personalization offering with the introduction and ongoing rollout of Zegna X, which is empowering our style advisors to further serve our customers using the latest technology.

“While we have seen broad-based strength, I am particularly pleased by the continued growth in EMEA and the very positive performance in the U.S., which was driven by strong double-digit Zegna sales via the retail channel. These strengths, coupled with the rebound in the Greater China region, are testaments to the soundness of our long-term strategy.”