Zegna Group and Moncler SpA have reported their respective third-quarter updates, with Zegna sales up 20.8 percent to EUR 431 million, and Moncler sales up 7 percent to EUR 669.7 million, with both Italian fashion groups revealing sales growth eased in Asia on dipping China revenues.
For the third quarter, Moncler Asia revenues grew by 22 percent, slowing from a 55 percent uptick in the second quarter, due to a tougher comparable base in the Chinese mainland, whose performance in the third quarter of 2022 was boosted by the end of several Covid-related lockdowns, said the Milanese group.
Elsewhere, Moncler Japan and Korea continued to report a “very solid performance in the third quarter, despite a slight normalisation,” according to Moncler in its update.
“I am very pleased with the results achieved during the third quarter of the year, when both the Moncler and the Stone Island brands delivered robust double-digit growth in the core DTC channel, despite a continuously volatile operating environment,” said Remo Ruffini, chairman and chief executive officer of Moncler SpA.
“This proves the strength of both our brands and reflects the deep connection we have built with our customers and our communities all around the globe. As we approach the most important part of the year, we remain vigilant in light of the ongoing macroeconomic uncertainties, but at the same time confident in the solidity of our brands and of our clear strategic vision.”
Over at Zegna, the luxury group’s Asia market was the only region to not report third-quarter double-digit sales growth, weighed down by China. Over the three months, Zegna APAC revenues reached EUR 158 million, up 3.5 percent year-over-year, driven by Japan, where group revenues reached EUR 19 million, up 31.8 percent.
The region also benefited from the conversion of 17 stores in South Korea after the acquisition of the Thom Browne business there.
However, the Greater China region saw revenues fall to EUR 112 million, a 3.4 percent decrease.
“Our results this quarter continue to showcase the broad-based strength of our three brands and the successful execution of our strategy. I am particularly pleased that we are performing well across a diverse set of regions, as the balance of our geographic mix provides resilience in a highly dynamic environment,” said Ermenegildo ‘Gildo’ Zegna, chairman and CEO of the Zegna Group.
“I am confident that the continued progress of the Zegna rebranding, including the full implementation of the One Brand strategy in China, the expansion opportunities for Thom Browne, and the integration and evolution of Tom Ford Fashion all provide valuable tailwinds despite the current global operating environment.”
The earnings updates from Zegna and Moncler come just days after luxury giant Kering report plummeting sales for the third quarter, down 13 percent, proving the latest international firm to be adversely affected by the global luxury sales slowdown taking place in the July to September quarter.
Earlier this month, luxury rival LVMH reported organic sales inched forward just 1 percent for the three months ending September.