Ermenegildo Zegna Group recorded a 6 percent increase in revenues to EUR 960.1 million in the first half, relaying its commitment to China despite its ongoing sluggish growth.
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In the first half, the Zegna segment (which includes Zegna brand, textile and third party brands) generated revenues of EUR 660.5 million, up 2.5 percent, while Thom Browne segment revenues slumped 19.7 percent to EUR 166.9 million.
The Tom Ford fashion segment surged 131.9 percent to EUR 148.5 million for the six months ending June 30.
Profit fell to EUR 31.3 million, compared to EUR 52.1 million, compared to the prior-year period.
In a post-earnings call, Zegna said it is committing to its expansion plans for China over the medium term, despite uncertainties on the timing of the region’s economic recovery post-Covid.
“Our 2-3 year growth strategy is not changing,” said chairman and chief executive officer Ermenegildo Zegna said an interview.
“We might delay a few shop openings scheduled this year, but we’ll keep investing in marketing and made-to-measure services in the country.”
Over the medium term, Zegna’s CEO said it is targeting growing sales for its recently acquired Tom Ford fashion business in markets where the brand is currently not a leader, including China, Japan and South Korea.
In China, the focus will be on tailor-made and personalised in-store offerings, Zegna added.
The Milan-based firm said Asia Pacific revenues rose 33 percent to EUR 110 million during the first half, driven by strong double-digit organic growth in the Japanese market, partially offset by its other Asian markets.