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Zegna back to growth in 2017, net income up 64% to €32.8 million
In the 2017 financial year, Italian luxury menswear group Ermenegildo Zegna was back on a positive track, posting a strong growth in revenue and profitability.
The Biella-based group recorded a revenue of €1.183 billion, up 2.3% at current exchange rates (+4.5% at constant exchange rates). EBITDA was €142 million, equivalent to 12% of sales, while net income leapt by 64%, reaching €32.8 million. The group’s net financial position also improved significantly, growing from €233 million to €316 million.
“Our performance is the result of the positive interaction of several factors, thanks to the new brand strategy we deployed in parallel with the appointment of Alessandro Sartori as Creative Director,” said Gildo Zegna, the group’s CEO. “The success of our collections, the development of capsule collections integrating our seasonal ones, a more intense marketing activity, notably the communication campaigns supporting the brand’s storytelling for specific products and events, allowed [Zegna] to tap the economic recovery currently characterising global markets,” added Gildo Zegna.
In 2017, sales were once more driven by exports, which accounted for 92% of the group’s consolidated revenue. China and Russia were Zegna’s leading markets, with Hong Kong, Macao, Singapore and Japan also posting a strong performance in the second half of the year.
“The countries which in 2017 enabled us to reverse the trend did confirm their results in early 2018, notably with positive sell-in figures for the Autumn/Winter 2018-19 collections. The USA did likewise, while recovery was weaker on our European markets,” said Gildo Zegna.
All of the group’s business areas grew in 2017, including the made-to-measure service, the new bespoke atelier in Milan and the couture line, which grew in double figures. In terms of product categories, footwear and fabrics posted excellent results.
Retail-wise, Zegna is planning new openings in Capri, Singapore, Beijing, Tokyo, Toronto and Mexico City. The existing Hong Kong and Beijing stores, and the one in Vancouver, will instead be extensively renovated and enlarged.
As of 31st December 2017, Ermenegildo Zegna operated 504 monobrand stores, of which 272 were directly owned and 232 were franchised stores.
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