The Strength of DTC Channels, as Well as Subsidiary Brands Thom Browne and Tom Ford, Drove the Impressive Results
Zegna Group has reported a strong increase in sales for the year, with revenues hitting €1.9 billion for 2023, up 27.6 percent year-on-year at constant exchange rates. The good news for the company comes amidst anticipations of an economic slump and a mixed bag of results for the luxury sector.
Sales through direct-to-consumer channels across its namesake brand as well as its subsidiary brand Thom Browne, as well as resilient demand in North America – where many luxury peers are experiencing a slowdown in sales – helped drive the growth. The consolidation of Tom Ford into the company earlier gave a boost of €236 million in sales for the full year.
The results arrive after the company shared ambitious targets at its capital markets day in December, when it announced plans to grow sales on average 10 percent per year, and profits 20 percent per year, over the medium term.
Speaking to the company’s successful play to resilient luxury desirability, group chairman and CEO Ermenegildo Zegna said, “The significant increase in our revenues in 2023, and especially from our network of directly operated stores, is a clear indication that demand for our brands remains healthy, and that we are successfully executing our strategy to increase their desirability and solidify their position as leaders in the luxury market.”
