Ermenegildo Zegna N.V. reported that revenues for 2022 were €1.49 billion, up 15.5 percent year-over-year. Excluding the Greater China Region, which was affected by COVID-19-related restrictions throughout 2022, mainly from mid-March to the end of May and then again in the fourth quarter, 2022 revenues were up 42 percent year-over-year.
Revenues of the Zegna segment were up 13.7 percent year-over-year to €1.18 billion, and revenues of the Thom Browne segment were up 25.3 percent year-over-year to €330.9 million.
Ermenegildo Zegna, Chairman and CEO of the Zegna Group, said, “Our robust performance in 2022 reflects the strong momentum and desirability of our brands as well as the soundness and success of our strategy and execution.
“Last year, we embarked on a journey of rebranding our namesake label as we unveiled the Zegna One Brand. We are still at the beginning of this journey, having just launched the second season and a number of new initiatives. 2023 is off to an encouraging start, with solid double-digit performance in the Group’s retail network, and I am optimistic that the reopening of the Greater China Region following COVID-19-related restrictions, together with the positive response to our collections we are seeing from our customers worldwide, will continue to drive the growth of our global business. However, it is important to acknowledge that current financial uncertainties and an ever-changing global environment have the potential to affect consumer attitudes and buying patterns. We remain focused on executing our strategy to further strengthen our market-leading position and our Made in Italy manufacturing platform while managing opportunities and challenges on Our Road to achieving our medium-term ambitions. We will do all of this without compromising our values and our dedication to quality, innovation, the environment, and our people.
“Furthermore,” he continued, “in November 2022, we announced the Tom Ford Fashion business transaction alongside the Estée Lauder Companies. Subject to and following the completion of that transaction, we will acquire the Tom Ford Fashion operations and operate the Tom Ford Fashion business under a long-term license from The Estée Lauder Companies. I look forward to sharing more details about our plans for this exceptional brand once the transaction closes, likely in the second quarter of this year.”
Profit for 2022 was €65.3 million, compared to a loss of €127.7 million in 2021. The change is primarily attributable to costs incurred in 2021 in connection with the Business Combination with Investindustrial Acquisition Corp, completed in December 2021. Profit for 2022 was impacted by higher net financial charges and higher taxes. Income taxes for the year ended December 31, 2022, amounted to €35.8 million, compared to €30.7 million for the year ended December 31, 2021, and the effective tax rate for the year ended December 31, 2022, was 35.4 percent.
Adjusted Profit/(Loss) was €73.6 million in 2022, down 2 percent from €75.3 million in 2021, primarily attributable to the performance of the Group’s securities holdings driven by the financial markets, offset by higher Adjusted EBIT of €8.6 million and a lower effective tax rate.
The Group aims for annual revenues to exceed €2 billion by the end of 2025 and for Adjusted EBIT Margin to reach at least 15 percent, excluding the Tom Ford Fashion business. The Group expects 2023 results to show that it is on this trajectory. The Group’s medium-term targets assume no further future escalation of the war in Ukraine, no significant macroeconomic or financial markets deterioration, no further disruption linked to pandemic in the GCR or elsewhere, and no other unforeseen events.
Photo courtesy Ermenegildo Zegna
