Zegna Luxury Group Sees 19.3% Rise in FY Organic Sales

April 8, 2024 : Italian luxury fashion conglomerate Ermenegildo Zegna Group (BIT: ZGN) announced a robust performance for the fiscal year ending December 2023. The group reported a significant increase of 19.3% in full-year organic revenue, driven by strong demand for its high-end products. This growth is particularly noteworthy as it excludes the effects of acquisitions or currency fluctuations, providing a clearer picture of the company’s underlying business performance.

The positive sales figures were fueled by a 24% surge in revenue within Greater China, a key market for luxury goods. This highlights the growing appetite among affluent Chinese consumers for Zegna’s brands, which include the namesake Zegna line alongside Thom Browne and Tom Ford Fashion.

Beyond geographical expansion, the company attributed its success to the ongoing Tom Ford Fashion business integration. This acquisition, completed in early 2023, is expected to further solidify Zegna’s position within the luxury fashion landscape, offering a more comprehensive and diversified brand portfolio to cater to a wider range of customer preferences.

Financial performance was not limited to revenue growth. Zegna reported Earnings Before Interest and Taxes (EBIT) of €220 million for 2023, a substantial increase from €157.7 million the previous year. This improvement in profitability underscores the company’s efficient operations and ability to translate robust sales into healthy bottom-line growth.

Zegna’s board of directors proposed a 20% increase in the annual dividend to reward shareholders for the company’s strong performance. This decision demonstrates the company’s commitment to returning value to its investors while continuing to invest in future growth initiatives.

Overall, Zegna’s financial results for FY 2023 paint a positive picture of a company experiencing significant momentum. The combination of strong sales growth, expanding market reach, and strategic acquisitions positions Zegna for continued success in the competitive luxury fashion industry.