Zegna’s first financial release as a publicly listed company is exceeding plan

Zegna’s first financial release as a publicly listed company confirms the luxury brand as a global leader in the luxury market.

Zena’s focus on innovation and the strong customer response to the luxury brand’s luxury leisurewear, resulted in a preliminary full year revenues outpacing our previously disclosed Plan.

For its Fiscal Year 2021, the Zegna Group posted a 27%3 Year-over-Year increase in revenues, to €1,292 million. This strong performance was driven by a continued rebound of the Zegna segment, whose revenues increased 23% to €1,035 million, as well as the exceptional performance of the Thom Browne brand, which was up 47%, with revenues totaling €263 million. Zegna branded products, which include apparel, bags, shoes and leather goods, as well as licensed goods and royalties, posted revenues that were up 33% to €847 million driven in large part by the robust growth in two primary areas: Luxury Leisurewear and Shoes. Thom Browne’s impressive performance was due to growth in every channel, geography and product line in both Men’s and Women’s categories. The Group’s textile revenues also saw a double-digit percentage increase to €102 million. The 9% decline in Strategic Alliances Year-over-Year to €75 million reflected a post-COVID adjustment phase in the B2B business.

“By focusing on our legacy brand – which is going through a major rebranding – and on the further strengthening of our one-of-a-kind Made in Italy luxury textile platform coupled with the dynamic pace at which Thom Browne continues, we were able to deliver a strong financial performance in 2021. While we will continue to monitor world events and the COVID pandemic’s potential impacts on our business, we remain optimistic about our growth in 2022, with improved profitability.” – Ermenegildo “Gildo” Zegna, Chairman and CEO of the Zegna Group.

“Part of Zegna’s ethos since our founding in 1910 has been a belief that creating the highest quality products goes hand in hand with caring for the natural world around us,” Mr. Zegna continued. “Drawing upon these values, the Zegna Group has made the decision that 2022 collections will be the last using fur for both Zegna and Thom Browne.”

The Zegna brand retail revenues increase – up 35% to €713 million – was driven by a strong recovery across geographies, especially North America. Strong retail performance was also evident in both EMEA and APAC, the latter thanks to the high-double digit performance of the Greater China Region, which is showing sales well ahead of 2019 levels. The luxury group wholesale revenues were also up during the period, with Zegna branded products increasing 24% to €134 million, thanks to the strong performance of North America and APAC, and Thom Browne by 32% to €125 million thanks mainly to EMEA and APAC. Thom Browne’s strong momentum led to 127% revenue growth in the retail channel when compared to 2019, significantly exceeding store footprint expansion. At the same time, Zegna brand growth was strong despite a refocusing of the mono-brand store footprint since 2019, indicative of a positive response to the brand re-set strategy. Notably, retail outperformed wholesale for both brands, reflecting our strategic focus on brand equity and an increasingly selective approach to wholesale distribution. Group retail sales represented a 66% incidence of total revenues in 2021, up from 60% in 2020 and 61% in 2019.

The ZEGNA Winter 2022 Fashion Show brought the luxury brand back to its roots in Oasi Zegna, the natural territory sprawling 100 km2 across Piedmont, Northern Italy. This ruggedly beautiful place is a living, breathing testament to the brand’s 112-year commitment to the environment.