Luxury fashion brand Ermenegildo Zegna has experienced a significant surge in revenue, driven by China’s economic rebound. The company reported a remarkable 37.4% increase in revenue during the second quarter, amounting to 475 million euros at constant currency. This growth has contributed to a positive uptick in revenue for both the first half of the year and the second quarter, solidifying the brand’s market share and profitability.
In the first half of the year, Ermenegildo Zegna recorded revenues of 903 million euros, reflecting a remarkable growth rate of 24.7%. The impressive performance continued in the second quarter, where organic growth reached 24.5% and revenues surged to 475 million euros. The acquisition and consolidation of Tom Ford and Pelletteria Tizeta have been cited as factors contributing to this increase in revenue.
The introduction of Tom Ford as a new operating and reporting segment within the group brought in revenues of 64 million euros. Furthermore, Zegna’s sales experienced substantial growth, amounting to 332 million euros in the second quarter alone, a growth rate of 25.2%. For the first half of the year, sales reached 652 million euros, reflecting a solid 18.4% increase.
Another brand under the Ermenegildo Zegna umbrella, Thom Browne, also saw an uptick in revenue. In the second quarter, the segment grew by 8.1% to 95 million euros, while revenue for the half-year period amounted to 208 million euros, a 13.6% increase. This growth was primarily driven by robust direct-to-consumer performance, which offset a decline in wholesale. Notably, Thom Browne expanded its retail network by adding 13 new stores since June 2022.
Geographically, Ermenegildo Zegna reported strong global growth in the second quarter, particularly in the Greater China Region, where revenues soared by 42% to 142 million euros. Southeast Asia also experienced significant year-over-year growth, and Japan saw a notable increase of 36.8%.
In terms of geographical revenue distribution, the EMEA (Europe, the Middle East, and Africa) region reported a 37.9% rise, reaching 173 million euros. The UAE and Europe were highlighted as particularly successful regions. In the United States, revenues amounted to 99 million euros for the quarter, showcasing a remarkable increase of 45.3%.
Ermenegildo Zegna’s remarkable revenue surge and market performance reflects its strong position in the luxury fashion industry. The brand’s ability to leverage China’s rebound and expand its presence in key markets has contributed to its success. With a focus on direct-to-consumer performance and strategic acquisitions, Ermenegildo Zegna continues to solidify its position as a leading luxury brand.
The growth and success of Ermenegildo Zegna indicate positive opportunities for the luxury fashion industry as a whole. The brand’s performance provides optimism for similar fashion houses and may signify a broader economic recovery in the wake of the COVID-19 pandemic.
