Zegna Group Experiences Rapid Growth in Q4 and Concludes 2023 with 27.6% Increase

The Zegna Group has ended 2023 on a high note, with a projected sales growth of 27.6% equating to €1.9 billion. This boost was disclosed upon the release of the firm's preliminary annual results. Both the flagship brand, Zegna, and Thom Browne label saw significant increases, showing growth in all regions. In comparison to LVMH's Fashion & Leather Goods division which saw a 9% growth in 2023, Zegna's impressive performance puts them ahead.

The Italian company particularly benefited from a record-setting fourth quarter, with sales rising by 40.1% to €570.3 million. The Zegna sector, also inclusive of the group's textile venture, recorded €1.322 billion in sales last year, a 12.4% increase. The Zegna brand alone, under the guidance of Alessandro Sartori, made sales of €1.1 billion, thanks in part to the popularity of its top-quality leisurewear. This range now contributes to half of its total sales. The brand's footwear also outshone other areas, responsible for 13% of the total revenue. Despite a delay in deliveries, the brand's direct sales increased by 22.4% to €945.3 million in 2023, more than compensating for the slight rise in sales via the wholesale network.

Zegna has recently renewed its licensing agreement with Marcolin, a trusted eyewear manufacturer, for the next seven years. In addition, the brand has taken over direct distribution in South Korea and changed beauty license partners, moving from Estée Lauder to the Italian organization Give Back Beauty.

In 2023, the American label Thom Browne made €380 million in sales, with €183.4 million coming from direct sales. Its strategy of widening the direct sales channel contributed to a sales growth of 30.2% in the last quarter of 2023. The brand's focus on women's clothing, accounting for 30% of total revenues, also underpinned this growth.

The Tom Ford brand also witnessed good sales figures of 235.5 million euros. Additionally, the textile business of the group headquartered in Piedmont experienced a growth of 10.4% to €150.9 million.

CEO Gildo Zegna expressed his satisfaction in a press release, highlighting the consistent growth in the EMEA region, the strong performance in the United States driven by direct-to-consumer strategies, and the recovery in China. In terms of sales, Ermenegildo Zegna Group experienced an increase of 41.6% in North America, 26.6% in EMEA and 22.2% in Asia-Pacific in 2023.