Ermenegildo Zegna Group Ends Full Year 2023 on a Strong Note With Accelerated Growth in the Fourth Quarter
- None.
- None.
Insights
The reported revenue growth figures for Ermenegildo Zegna N.V. are noteworthy, particularly the 27.6% year-over-year increase and the organic growth rate of 19.3%. These indicators are crucial for investors as they reflect the company's ability to expand its business without relying on acquisitions or currency fluctuations. The acceleration of organic growth from 11.3% in 3Q 2023 to 19.6% in 4Q 2023 suggests a strong end to the fiscal year, which could signal positive momentum going into the next financial period.
From a financial perspective, the growth in direct-to-consumer channels is significant as it often correlates with higher margins compared to wholesale channels. The shift of some Spring/Summer 2024 deliveries from 4Q 2023 to 1Q 2024 should be monitored as it may impact the comparability of year-over-year growth rates. The decline in Third-Party Brands revenue following the end of a distribution licensing agreement is also noteworthy, as it highlights the importance of strategic partnerships and their impact on revenue streams.
Geographically, the robust growth in North America and the rebound in the Greater China Region are positive signs of the company's global appeal and strategic positioning. However, investors should consider the potential volatility in luxury spending due to macroeconomic factors when evaluating the long-term sustainability of this growth.
The luxury fashion sector, as represented by Zegna Group's performance, seems to be thriving despite global economic uncertainties. The strong demand across ZEGNA and Thom Browne brands, especially in the direct-to-consumer channels, indicates a successful adaptation to consumer preferences for luxury and personalized experiences. The introduction of ZEGNA X, focusing on Made-to-Measure and product customization, exemplifies the company's innovative approach to enhancing customer engagement and differentiating itself in the marketplace.
It is also important to note the strategic operational shifts, such as the direct operation of the business in South Korea and the renewal of the eyewear partnership with Marcolin. These moves suggest a focus on controlling brand representation and expanding product offerings, which could strengthen the brand's market position. The performance in various product lines, with luxury leisurewear and footwear showing outstanding growth, aligns with broader industry trends where consumers are seeking both comfort and luxury.
The reported figures from Zegna Group provide an interesting lens into the luxury goods market's resilience in the face of economic headwinds. The luxury segment often behaves counter-cyclically to economic downturns, which seems to be the case here. The strong performance in diverse markets, from EMEA to APAC, indicates that the luxury consumer base is not as affected by the economic factors that may constrain middle-market spending.
However, the reliance on specific regions, like the Greater China Region and North America, for a substantial portion of the revenue growth, may introduce regional risks, such as geopolitical tensions or local economic downturns. Furthermore, the mention of a 'challenging environment' by the Chairman and CEO suggests that the company is not immune to broader economic issues and is aware of potential headwinds.
Lastly, the strategic focus on direct-to-consumer sales and the organic growth rate are particularly telling. They indicate not only brand strength but also operational efficiency and a potentially more stable revenue base less susceptible to wholesale market fluctuations.
-
Revenues1 for FY 2023 reach
€1.9 billion , up27.6% year-over-year, with an organic2 growth rate of19.3% .
-
Revenues1 for 4Q 2023 reach
€570 million , up40.1% year-over-year, with an organic2 growth rate of19.6% , accelerating from11.3% in 3Q 2023.
- Strong revenue growth in both ZEGNA and Thom Browne direct-to-consumer channels thanks to robust demand across both brands.
Ermenegildo “Gildo” Zegna, Chairman and CEO of the Zegna Group, said: “I am very proud of the Group’s success over the past year, which is demonstrated by our strong and continued revenues growth. 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. The continuing improvement in the ZEGNA brand productivity, in particular, is a testament to the strength of our execution, supported by our successful merchandising and CRM. Our integrated supply chain benefits all three of our brands and drives ZEGNA’s leadership in Made-to-Measure and product customization. We are focused on further enhancing our Made-to-Measure and personalization offering with the introduction and ongoing rollout of ZEGNA X, which is empowering our style advisors to further serve our customers using the latest technology.”
“While we have seen broad-based strength, I am particularly pleased by the continued growth in EMEA and the very positive performance in the US, which was driven by strong double-digit ZEGNA sales via the retail channel. These strengths, coupled with the rebound in the
Recent Highlights
-
ZEGNA Renews Eyewear Partnership with Marcolin
On January 30, 2024, ZEGNA announced the renewal of its licensing agreement with Marcolin to produce ZEGNA-branded eyewear, which will now continue through the end of 2030. The renewal continues the strong partnership built between the companies since it was launched in 2015.
-
ZEGNA 2024 Milan Men’s Fashion Week Show
On January 15, 2024, ZEGNA transformed a large industrial space into an “Oasi of Cashmere” for its Fall 2024 Men’s fashion show inMilan . The presentation showcased new designs from artistic director Alessandro Sartori for the brand’s Oasi Cashmere collection, focusing on elements that can be combined in many ways to reflect each customer’s sense of style. The collection was incredibly well received and praised for the way in which it brought high-quality raw materials to life.
-
ZEGNA Begins Direct Operations of its Business in
Korea
Pursuant to the agreement announced on October 24, 2023 between ZEGNA and its South Korean franchise partner, as of January 1, 2024, the Group began directly operating the ZEGNA Business inSouth Korea . This involved the conversion of the 16 ZEGNA stores in the region to direct-to-consumer points of sale.
-
ZEGNA Signs New License Agreement for Fragrances and Cosmetics
On November 6, 2023, ZEGNA announced a long-term license agreement with Give Back Beauty for the creation, production, marketing and distribution of fragrances and cosmetics products under the ZEGNA brand worldwide.
-
Upcoming TOM FORD FASHION and Thom Browne Fashion Shows
Thom Browne’s FW24 Fashion Show in set to take place inNew York on February 14, 2024, and the TOM FORD FASHION FW24 Fashion Show will take place inMilan on February 22, 2024.
Review of Preliminary Unaudited Revenues for the Full Year 2023 and the Fourth Quarter of 2023
For the full year 2023, Zegna Group generated revenues of
Revenues by Segment
Zegna Segment4: For the full year 2023, revenues for the Zegna segment amounted to
Thom Browne Segment: For the full year 2023, revenues for the Thom Browne segment amounted to
Tom Ford Fashion Segment4: Revenues for the Tom Ford Fashion segment since its consolidation on April 29, 2023, came in at
Inter segment eliminations grew from -
Revenues by Product Line
Zegna-Branded Products: For the full year 2023, revenues for Zegna-branded products were
Thom Browne: For the full year 2023, revenues for the Thom Browne product line were
Tom Ford Fashion: For the full year 2023, revenues for the Tom Ford Fashion product line, calculated as of its consolidation on April 29, 2023, came in at
Textile: For the full year 2023, revenues for the Group’s Textile product line amounted to
Third-Party Brands: For the full year 2023, revenues for the Third-Party Brands product line were
Revenues by Channel
Direct-to-Consumer (DTC): DTC revenues for the full year 2023 amounted to
For 4Q 2023, DTC revenues amounted to
Wholesale: Wholesale revenues for the full year 2023 amounted to
For 4Q 2023, Group wholesale revenues came in at
Revenues by Geography
Revenues for both the full year and the fourth quarter of 2023 were strong across all key geographies, with double-digit growth across all regions compared to 2022. The most significant growth was reported in
For the full year 2023, revenues in EMEA amounted to
For the full year 2023, revenues in
For the full year 2023, revenues in APAC were
For the full year 2023, revenues in
Outlook
At its second Capital Markets Day, held on December 5, 2023, in
***
Conference Call
As previously announced, today at 8:00 a.m. ET (2:00 p.m. CET), the Company will host a webcast and conference call. A live webcast of the conference call will also be available on the Company’s website at ir.zegnagroup.com. To participate in the call, please dial:
Participant Access Code: 014897
Webcast link: https://events.q4inc.com/attendee/494128045
An online archive of the broadcast will be available on the website shortly after the live call and will be available for twelve months.
***
Next Scheduled Announcement
The next scheduled announcement will be the full year 2023 financial results on April 5, 2024. To receive email alerts of the timing of future financial news releases, as well as future announcements, please register at https://ir.zegnagroup.com.
***
About Ermenegildo Zegna Group
Founded in 1910 in Trivero,
***
Forward Looking Statements
This communication, including the section “Outlook”, contains forward-looking statements that are based on beliefs and assumptions and on information currently available to the Company. In particular, statements regarding future financial performance and the Group’s expectations as to the achievement of certain targeted metrics at any future date or for any future period are forward-looking statements. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “target,” “seek”, “aspire,” “goal,” “outlook,” “guidance,” “forecast,” “prospect” or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, although not all forward-looking statements contain these words. Any statements that refer to expectations, projections or other characterizations of future events or circumstances, including strategies or plans, are also forward-looking statements. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements, and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in forward-looking statements as a result of a variety of factors, including: the recognition, integrity and reputation of our brands; our ability to anticipate trends and to identify and respond to new and changing consumer preference; the COVID-19 pandemic or similar public health crises; international business, regulatory, social and political risks; the conflict in
____________________
1 Throughout this press release, FY 2023 and 4Q 2023 revenues are preliminary and unaudited.
2 Organic growth is a non-IFRS financial measure. See the Non-IFRS Financial Measures section starting on page [9] of this press release for the definition of such non-IFRS financial measure and a reconciliation to the most directly comparable IFRS measure.
3 Revenue growth at constant currency is a non-IFRS financial measure. See the Non-IFRS Financial Measures section starting on page [9] of this press release for the definition of such non-IFRS financial measure.
4 As a result of organizational changes within the Group and changes in the information provided to the CODM for the purposes of making strategic decisions relating to the assessment of performance and the allocation of resources, revenues from Pelletteria Tizeta which were allocated to the Zegna segment in the semi-annual report, are now presented within the Tom Ford Fashion segment for the year ended December 31, 2023.
5 As previously disclosed, the licensing agreement for the production and worldwide distribution of luxury men’s ready-to-wear and made-to-measure clothing, footwear, and accessories under the TOM FORD brand expired with the deliveries of the Fall/Winter 2022 collection, and a supply agreement to act as the exclusive supplier for certain TOM FORD menswear products commenced starting with the Spring/Summer 2023 collection.
***
Fourth Quarter 2023 and FY 2023 - Preliminary Unaudited Group Revenues |
||||||||||||||||||||
Group Revenues by Segment (Preliminary and Unaudited) |
||||||||||||||||||||
|
|
|
|
|
FY 2023 vs FY 2022 |
|
|
|
|
|
Q4 2023 vs Q4 2022 |
|||||||||
(€ thousands, except percentages) |
FY 2023 |
|
FY 2022 |
|
Reported Revenues |
|
Constant Currency |
|
Organic Growth |
|
Q4 2023 |
|
Q4 2022 |
|
Reported Revenues |
|
Constant Currency |
|
Organic Growth |
|
Zegna |
1,322,045 |
|
1,176,706 |
|
|
|
|
|
|
|
385,290 |
|
334,477 |
|
|
|
|
|
|
|
Thom Browne |
380,287 |
|
330,891 |
|
|
|
|
|
|
|
98,685 |
|
75,818 |
|
|
|
|
|
|
|
Tom Ford Fashion |
235,544 |
|
— |
|
n.m.(*) |
|
n.m. |
|
n.m. |
|
96,964 |
|
— |
|
n.m. |
|
n.m. |
|
n.m. |
|
Eliminations |
(33,327) |
|
(14,757) |
|
n.m. |
|
n.m. |
|
n.m. |
|
(10,579) |
|
(3,322) |
|
n.m. |
|
n.m. |
|
n.m. |
|
Total revenues |
1,904,549 |
|
1,492,840 |
|
|
|
|
|
|
|
570,360 |
|
406,973 |
|
|
|
|
|
|
|
______________________________________ (*) Throughout this section “n.m.” means not meaningful |
Group Revenues by Product Line (Preliminary and Unaudited) |
||||||||||||||||||||
|
|
|
FY 2023 vs FY 2022 |
|
|
|
Q4 2023 vs Q4 2022 |
|||||||||||||
(€ thousands, except percentages) |
FY 2023 |
|
FY 2022 |
|
Reported Revenues |
|
Constant Currency |
|
Organic Growth |
|
Q4 2023 |
|
Q4 2022 |
|
Reported Revenues |
|
Constant Currency |
|
Organic Growth |
|
Zegna branded products |
1,109,491 |
|
923,942 |
|
|
|
|
|
|
|
325,843 |
|
274,374 |
|
|
|
|
|
|
|
Thom Browne |
378,410 |
|
330,014 |
|
|
|
|
|
|
|
98,283 |
|
75,668 |
|
|
|
|
|
|
|
Tom Ford Fashion |
235,531 |
|
— |
|
n.m. |
|
n.m. |
|
n.m. |
|
96,964 |
|
— |
|
n.m. |
|
n.m. |
|
n.m. |
|
Textile |
150,986 |
|
136,769 |
|
|
|
|
|
|
|
42,431 |
|
37,513 |
|
|
|
|
|
|
|
Third Party Brands |
25,343 |
|
97,792 |
|
( |
|
( |
|
( |
|
5,345 |
|
18,188 |
|
( |
|
( |
|
( |
|
Other |
4,788 |
|
4,323 |
|
|
|
|
|
|
|
1,494 |
|
1,230 |
|
|
|
|
|
|
|
Total revenues |
1,904,549 |
|
1,492,840 |
|
|
|
|
|
|
|
570,360 |
|
406,973 |
|
|
|
|
|
|
Group Revenues by Sales Channel (Preliminary and Unaudited) |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
FY 2023 vs FY 2022 |
|
|
|
|
|
|
|
|
|
Q4 2023 vs Q4 2022 |
|||||||||
(€ thousands, except percentages) |
FY 2023 |
% of Revenues |
FY 2022 |
% of Revenues |
Reported Revenues |
Constant Currency |
Organic Growth |
Q4 2023 |
% of Revenues |
Q4 2022 |
% of Revenues |
Reported Revenues |
Constant Currency |
Organic Growth |
||||||||||||||
Direct to Consumer (DTC) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zegna branded products |
945,313 |
|
|
|
772,505 |
|
|
|
|
|
|
|
|
|
284,170 |
|
|
|
230,277 |
|
|
|
|
|
|
|
|
|
Thom Browne |
183,422 |
|
|
|
145,702 |
|
|
|
|
|
|
|
|
|
57,150 |
|
|
|
42,983 |
|
|
|
|
|
|
|
|
|
Tom Ford Fashion |
136,291 |
|
|
|
— |
|
|
|
n.m. |
|
n.m. |
|
n.m. |
|
58,499 |
|
|
|
— |
|
|
|
n.m. |
|
n.m. |
|
n.m. |
|
Total Direct to Consumer (DTC) |
1,265,026 |
|
|
|
918,207 |
|
|
|
|
|
|
|
|
|
399,819 |
|
|
|
273,260 |
|
|
|
|
|
|
|
|
|
Wholesale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zegna branded products |
164,178 |
|
|
|
151,437 |
|
|
|
|
|
|
|
|
|
41,673 |
|
|
|
44,097 |
|
|
|
( |
|
( |
|
( |
|
Thom Browne |
194,988 |
|
|
|
184,312 |
|
|
|
|
|
|
|
|
|
41,133 |
|
|
|
32,685 |
|
|
|
|
|
|
|
|
|
Tom Ford Fashion |
99,240 |
|
|
|
— |
|
|
|
n.m. |
|
n.m. |
|
n.m. |
|
38,465 |
|
|
|
— |
|
|
|
n.m. |
|
n.m. |
|
n.m. |
|
Third Party Brands and Textile |
176,329 |
|
|
|
234,561 |
|
|
|
( |
|
( |
|
|
|
47,776 |
|
|
|
55,701 |
|
|
|
( |
|
( |
|
|
|
Total Wholesale |
634,735 |
|
|
|
570,310 |
|
|
|
|
|
|
|
|
|
169,047 |
|
|
|
132,483 |
|
|
|
|
|
|
|
|
|
Other |
4,788 |
|
|
|
4,323 |
|
|
|
n.m. |
|
n.m. |
|
n.m. |
|
1,494 |
|
|
|
1,230 |
|
|
|
n.m. |
|
n.m. |
|
n.m. |
|
Total revenues |
1,904,549 |
|
|
|
1,492,840 |
|
|
|
|
|
|
|
|
|
570,360 |
|
|
|
406,973 |
|
|
|
|
|
|
|
|
Group Revenues by Geographical Area (Preliminary and Unaudited) |
||||||||||||||||||||
|
|
|
FY 2023 vs FY 2022 |
|
|
|
Q4 2023 vs Q4 2022 |
|||||||||||||
(€ thousands, except percentages) |
FY 2023 |
|
FY 2022 |
|
Reported Revenues |
|
Constant Currency |
|
Organic Growth |
|
Q4 2023 |
|
Q4 2022 |
|
Reported Revenues |
|
Constant Currency |
|
Organic Growth |
|
EMEA (1) |
658,694 |
|
520,226 |
|
|
|
|
|
|
|
183,747 |
|
140,400 |
|
|
|
|
|
|
|
of which |
281,793 |
|
224,342 |
|
|
|
|
|
|
|
69,999 |
|
53,234 |
|
|
|
|
|
|
|
of which |
70,191 |
|
53,970 |
|
|
|
|
|
|
|
21,511 |
|
15,362 |
|
|
|
|
|
|
|
of which |
68,729 |
|
50,926 |
|
|
|
|
|
|
|
23,635 |
|
19,310 |
|
|
|
|
|
|
|
|
417,352 |
|
294,686 |
|
|
|
|
|
|
|
131,962 |
|
82,406 |
|
|
|
|
|
|
|
of which |
384,544 |
|
270,312 |
|
|
|
|
|
|
|
125,380 |
|
76,718 |
|
|
|
|
|
|
|
|
37,538 |
|
29,889 |
|
|
|
|
|
|
|
13,389 |
|
10,331 |
|
|
|
|
|
|
|
APAC (4) |
788,007 |
|
644,802 |
|
|
|
|
|
|
|
240,635 |
|
173,058 |
|
|
|
|
|
|
|
of which |
595,515 |
|
494,110 |
|
|
|
|
|
|
|
176,335 |
|
130,657 |
|
|
|
|
|
|
|
of which |
84,990 |
|
65,445 |
|
|
|
|
|
|
|
26,316 |
|
20,727 |
|
|
|
|
|
|
|
Other (5) |
2,958 |
|
3,237 |
|
( |
|
( |
|
( |
|
627 |
|
778 |
|
( |
|
( |
|
( |
|
Total revenues |
1,904,549 |
|
1,492,840 |
|
|
|
|
|
|
|
570,360 |
|
406,973 |
|
|
|
|
|
|
________________________________________ |
||
(1) |
|
EMEA includes |
(2) |
|
|
(3) |
|
|
(4) |
|
APAC includes the |
(5) |
|
Other revenues mainly include royalties. |
Monobrand(1) Store Network at December 31, 2023 |
||||||||||||||
|
At December 31, 2023 |
|
At December 31, 2022 |
|||||||||||
Stores |
Zegna |
|
Thom Browne |
|
Tom Ford Fashion |
|
Group |
|
Zegna |
|
Thom Browne |
|
Group |
|
EMEA (2) |
71 |
|
9 |
|
4 |
|
84 |
|
65 |
|
10 |
|
75 |
|
|
59 |
|
7 |
|
12 |
|
78 |
|
53 |
|
7 |
|
60 |
|
APAC |
123 |
|
70 |
|
35 |
|
228 |
|
121 |
|
46 |
|
167 |
|
Total Direct to Consumer (DTC) |
253 |
|
86 |
|
51 |
|
390 |
|
239 |
|
63 |
|
302 |
|
EMEA (2) |
55 |
|
7 |
|
14 |
|
76 |
|
57 |
|
6 |
|
63 |
|
|
63 |
|
3 |
|
50 |
|
116 |
|
64 |
|
4 |
|
68 |
|
APAC |
33 |
|
15 |
|
6 |
|
54 |
|
35 |
|
32 |
|
67 |
|
Total Wholesale |
151 |
|
25 |
|
70 |
|
246 |
|
156 |
|
42 |
|
198 |
|
Total |
404 |
|
111 |
|
121 |
|
636 |
|
395 |
|
105 |
|
500 |
________________________________________ |
||
(1) |
|
Monobrand store count includes our DOSs (which are divided into boutiques and outlets) and our Wholesale monobrand stores (including also monobrand franchisees). |
(2) |
|
Does not include any stores in |
(3) |
|
|
***
Non-IFRS Financial Measures
Zegna’s management monitors and evaluates operating and financial performance using several non-IFRS financial measures including: adjusted earnings before interest and taxes (“Adjusted EBIT”), Adjusted EBIT Margin, revenues on a constant currency basis (Constant Currency) and revenues on an organic growth basis (Organic Growth). Zegna’s management believes that these non-IFRS financial measures provide useful and relevant information regarding Zegna’s financial performance and financial condition, and improve the ability of management and investors to assess and compare the financial performance and financial position of Zegna with those of other companies. They also provide comparable measures that facilitate management’s ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and other strategic and operational decisions. While similar measures are widely used in the industry in which Zegna operates, the financial measures that Zegna uses may not be comparable to other similarly named measures used by other companies nor are they intended to be substitutes for measures of financial performance or financial position as prepared in accordance with IFRS.
Adjusted EBIT and Adjusted EBIT Margin
Adjusted EBIT is defined as profit or loss before income taxes plus financial income, financial expenses, foreign exchange losses and the result from investments accounted for using the equity method, adjusted for income and costs which are significant in nature and that management considers not reflective of underlying operating activities.
Adjusted EBIT Margin is defined as Adjusted EBIT divided by revenues of the applicable period.
Zegna’s management uses Adjusted EBIT and Adjusted EBIT Margin for internal reporting to assess performance and as part of the forecasting, budgeting and decision-making processes as they provide additional transparency regarding Zegna’s underlying operating performance. Zegna’s management believes these non-IFRS financial measures are useful because they exclude items that management believes are not indicative of Zegna’s underlying operating performance and allow management to view operating trends, perform analytical comparisons and benchmark performance between periods and among segments. Zegna’s management also believes that Adjusted EBIT and Adjusted EBIT Margin are useful for investors and analysts to better understand how management assesses Zegna’s underlying operating performance on a consistent basis and to compare Zegna’s performance with that of other companies. Accordingly, management believes that Adjusted EBIT and Adjusted EBIT Margin provide useful information to third party stakeholders in understanding and evaluating Zegna’s operating results.
Revenues on a constant currency basis (Constant Currency)
In addition to presenting our revenues on a current currency basis, we also present certain revenue information on a constant currency basis (Constant Currency), which excludes the effects of foreign currency translation from our subsidiaries with functional currencies different from the Euro.
We calculate Constant Currency revenues by applying the current period average foreign currency exchange rates to translate prior period revenues of foreign subsidiaries expressed in local functional currencies different than the Euro.
We use revenues on a Constant Currency basis to analyze how our underlying revenues have changed between periods independent of the effects of foreign currency translation.
Revenues on a Constant Currency basis are not a substitute for revenues on a current currency basis or any IFRS-related measures, however we believe that revenues excluding the impact of foreign currency translation provide additional useful information to management and to investors in analyzing and evaluating our revenues and operating performance.
Revenues on an organic growth basis (Organic Growth)
In addition to presenting our revenues on a current currency basis, we also present certain revenue information on an organic growth basis (Organic Growth). Organic Growth is calculated as the change in revenues from period to period, excluding the effects of (a) foreign exchange, (b) acquisitions and disposals and (c) changes in license agreements where Zegna operates as a licensee.
In calculating Organic Growth, the following adjustments are made to revenues:
(a) |
|
Foreign exchange – Current period average foreign currency exchange rates are used to translate prior period revenues of foreign subsidiaries expressed in local functional currencies different than the Euro. |
(b) |
|
Acquisitions and disposals – Revenues generated by businesses and operations acquired or disposed in the current year or prior year are excluded from both periods. Additionally, where a business or operation was a customer prior to an acquisition, the related pre-acquisition revenues are excluded from the current and prior periods. |
(c) |
|
Changes in license agreements where Zegna operates as a licensee – Revenues generated from license agreements where Zegna operates as a licensee that are new or terminated in the current year or prior year are excluded from both periods (except if the effects are already included in acquisitions and disposals). Additionally, revenues generated from license agreements where Zegna operates as a licensee that experienced a structural change in the scope or perimeter in the current year or prior year are excluded from both periods, including changes to product categories, sales channels or geographies of the underlying license agreements. |
We believe the presentation of Organic Growth is useful to better understand and analyze the underlying change in the Group’s revenues from period to period on a consistent perimeter and constant currency basis.
Revenues on an Organic Growth basis are not a substitute for revenues on a current currency basis or any IFRS-related measures, however we believe that revenues excluding the effects of (a) foreign exchange, (b) acquisitions and disposals and (c) changes in license agreements where Zegna operates as a licensee provide additional useful information to management and to investors in analyzing and evaluating our revenues and operating performance.
The tables below show a reconciliation of revenue growth to organic growth, excluding the effects of foreign exchange, acquisitions and disposals and changes in license agreements where Zegna operates as a licensee, by segment, by product line, by sales channel and by geography:
- for the year ended December 31, 2023 compared to December 31, 2022 (FY 2023 vs FY 2022); and
- for the three months ended December 31, 2023 compared to the three months ended December 31, 2022 (Q4 2023 vs Q4 2022).
Segment
|
FY 2023 vs FY 2022 |
|||||||||
|
Revenues growth |
|
less Foreign exchange |
|
less Acquisitions and disposals |
|
less Changes in license agreements where Zegna operates as a licensee |
|
Organic Growth |
|
Zegna |
|
|
( |
|
—% |
|
( |
|
|
|
Thom Browne |
|
|
( |
|
|
|
—% |
|
|
|
Tom Ford Fashion(*) |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
Total for Zegna Group |
|
|
( |
|
|
|
( |
|
|
________________________________________ |
||
(*) |
|
Throughout this section considered not meaningful (n.m.) as the Group began operating the Tom Ford Fashion segment following the TFI Acquisition, which was completed on April 28, 2023, therefore there is no comparison figure for the period. |
|
Q4 2023 vs Q4 2022 |
|||||||||
|
Revenues growth |
|
less Foreign exchange |
|
less Acquisitions and disposals |
|
less Changes in license agreements where Zegna operates as a licensee |
|
Organic Growth |
|
Zegna |
|
|
( |
|
—% |
|
( |
|
|
|
Thom Browne |
|
|
( |
|
|
|
—% |
|
|
|
Tom Ford Fashion |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
Total for Zegna Group |
|
|
( |
|
|
|
( |
|
|
Product line
|
FY 2023 vs FY 2022 |
|||||||||
Revenues growth |
|
less Foreign exchange |
|
less Acquisitions and disposals |
|
less Changes in license agreements where Zegna operates as a licensee |
|
Organic Growth |
||
Zegna branded products |
|
|
( |
|
—% |
|
—% |
|
|
|
Thom Browne |
|
|
( |
|
|
|
—% |
|
|
|
Tom Ford Fashion |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
Textile |
|
|
|
|
( |
|
—% |
|
|
|
Third Party Brands |
( |
|
|
|
—% |
|
( |
|
( |
|
Other |
|
|
( |
|
( |
|
—% |
|
|
|
Total for Zegna Group |
|
|
( |
|
|
|
( |
|
|
|
Q4 2023 vs Q4 2022 |
|||||||||
Revenues growth |
|
less Foreign exchange |
|
less Acquisitions and disposals |
|
less Changes in license agreements where Zegna operates as a licensee |
|
Organic Growth |
||
Zegna branded products |
|
|
( |
|
—% |
|
—% |
|
|
|
Thom Browne |
|
|
( |
|
|
|
—% |
|
|
|
Tom Ford Fashion |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
Textile |
|
|
|
|
( |
|
—% |
|
|
|
Third Party Brands |
( |
|
( |
|
—% |
|
( |
|
( |
|
Other |
|
|
( |
|
( |
|
—% |
|
|
|
Total for Zegna Group |
|
|
( |
|
|
|
( |
|
|
Sales channel
|
FY 2023 vs FY 2022 |
|||||||||
|
Revenues growth |
|
less Foreign exchange |
|
less Acquisitions and disposals |
|
less Changes in license agreements where Zegna operates as a licensee |
|
Organic Growth |
|
Direct to Consumer (DTC) |
|
|
|
|
|
|
|
|
|
|
Zegna branded products |
|
|
( |
|
—% |
|
—% |
|
|
|
Thom Browne |
|
|
( |
|
|
|
—% |
|
|
|
Tom Ford Fashion |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
Total Direct to Consumer (DTC) |
|
|
( |
|
|
|
—% |
|
|
|
Wholesale |
|
|
|
|
|
|
|
|
|
|
Zegna branded products |
|
|
|
|
—% |
|
—% |
|
|
|
Thom Browne |
|
|
( |
|
( |
|
—% |
|
|
|
Tom Ford Fashion |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
Third Party Brands and Textile |
( |
|
|
|
( |
|
( |
|
|
|
Total Wholesale |
|
|
|
|
|
|
( |
|
|
|
Other |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
Total for Zegna Group |
|
|
( |
|
|
|
( |
|
|
|
Q4 2023 vs Q4 2022 |
|||||||||
|
Revenues growth |
|
less Foreign exchange |
|
less Acquisitions and disposals |
|
less Changes in license agreements where Zegna operates as a licensee |
|
Organic Growth |
|
Direct to Consumer (DTC) |
|
|
|
|
|
|
|
|
|
|
Zegna branded products |
|
|
( |
|
—% |
|
—% |
|
|
|
Thom Browne |
|
|
( |
|
|
|
—% |
|
|
|
Tom Ford Fashion |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
Total Direct to Consumer (DTC) |
|
|
( |
|
|
|
—% |
|
|
|
Wholesale |
|
|
|
|
|
|
|
|
|
|
Zegna branded products |
( |
|
|
|
—% |
|
—% |
|
( |
|
Thom Browne |
|
|
( |
|
( |
|
—% |
|
|
|
Tom Ford Fashion |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
Third Party Brands and Textile |
( |
|
|
|
( |
|
( |
|
|
|
Total Wholesale |
|
|
|
|
|
|
( |
|
|
|
Other |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
Total for Zegna Group |
40.1 % |
|
(2.8) % |
|
26.2 % |
|
(2.9) % |
|
19.6 % |
Geographical area
|
FY 2023 vs FY 2022 |
|||||||||
|
Revenues growth |
|
less Foreign exchange |
|
less Acquisitions and disposals |
|
less Changes in license agreements where Zegna operates as a licensee |
|
Organic Growth |
|
EMEA (1) |
|
|
( |
|
|
|
( |
|
|
|
of which |
|
|
—% |
|
|
|
( |
|
|
|
of which |
|
|
( |
|
|
|
( |
|
|
|
of which |
|
|
( |
|
|
|
—% |
|
|
|
|
|
|
|
|
|
|
( |
|
|
|
of which |
|
|
|
|
|
|
( |
|
|
|
|
|
|
|
|
—% |
|
—% |
|
|
|
APAC (4) |
|
|
( |
|
|
|
( |
|
|
|
of which |
|
|
( |
|
|
|
( |
|
|
|
of which |
|
|
( |
|
|
|
( |
|
|
|
Other (5) |
( |
|
( |
|
|
|
—% |
|
( |
|
Total for Zegna Group |
|
|
( |
|
|
|
( |
|
|
|
Q4 2023 vs Q4 2022 |
|||||||||
|
Revenues growth |
|
less Foreign exchange |
|
less Acquisitions and disposals |
|
less Changes in license agreements where Zegna operates as a licensee |
|
Organic Growth |
|
EMEA (1) |
|
|
( |
|
|
|
( |
|
|
|
of which |
|
|
( |
|
|
|
( |
|
|
|
of which |
|
|
( |
|
|
|
( |
|
|
|
of which |
|
|
( |
|
|
|
—% |
|
|
|
|
|
|
( |
|
|
|
( |
|
|
|
of which |
|
|
( |
|
|
|
( |
|
|
|
|
|
|
|
|
—% |
|
—% |
|
|
|
APAC (4) |
|
|
( |
|
|
|
( |
|
|
|
of which |
|
|
( |
|
|
|
( |
|
|
|
of which |
|
|
( |
|
|
|
( |
|
|
|
Other (5) |
( |
|
( |
|
|
|
—% |
|
( |
|
Total for Zegna Group |
|
|
( |
|
|
|
( |
|
|
________________________________________ |
||
(1) |
|
EMEA includes |
(2) |
|
|
(3) |
|
|
(4) |
|
APAC includes the |
(5) |
|
Other revenues mainly include royalties. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240131515656/en/
Investor Relations/Group Communications/Media
Francesca Di Pasquantonio / Clementina Tito
ir@zegna.com / corporatepress@zegna.com
Source: Zegna Group
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