Italian fashion houses Tod’s S.p.A and Ermenegildo Zegna group reported their full-year 2022 results on January 25, citing double-digit declines in their respective Greater China markets, on the back of stringent lockdown restrictions thanks to Covid-19.nt lockdown restrictions thanks to Covid-19 during the year.
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Tod’s said Greater China revenues fell 8.4 percent to EUR 287.2 million in reported rates, compared to EUR 313.4 million in 2021. The region clocked EUR 269.6 million in constant exchange rates, said the owner of Tod’s, Roger Vivier, Hogan, and Fay brands.
“The Chinese market, after a good start to the year, suffered a significant slowdown in growth, starting in March, due to the strict government restrictions taken to face the Covid-19 pandemic,” said the Milan-based company.
“Even after the progressive easing of these measures, in the second half of the year, the trend of consumer demand remained volatile and impacted by local and temporary lockdowns in various primary cities.”
Likewise, fellow Italian fashion house Zegna Group clocked a 16.1 percent decline in Greater China sales for the 12-month period, to EUR 494. 1 million, compared to EUR 588.9 million in 2021.
The APAC region as a whole dipped 7.4 percent to EUR 644.8 million, while Japan revenues skyrocketed 18 percent, to EUR 65.4 million for the year.
“Group revenues in the GCR were down 30.3 percent year-over-year for 4Q 2022, reaching EUR 131 million. The drop in revenues was a result of Covid-19 disruptions throughout the year, especially severe during the fourth quarter,” said Zegna Group.
“After restrictions were eased in early December, we also experienced temporary store closures due to staff shortages. Operations have since normalized, returning to more predictable activities.
The group, which also owns Thom Browne, added it has reached an agreement with its Korean partner of 12 years, Samsung C&T Corporation, which will Thom Browne directly operate its Korean business through a newly formed and wholly owned company, Thom Browne Korea.
Thom Browne Korea will assume direct responsibility for all activities within the Korean market, with external support from Samsung. Samsung and Thom Browne will continue their successful collaboration through an innovative retail management agreement, effective July 1, 2023, through which Samsung will manage Thom Browne’s wholly owned network of 17 stores in Korea.