Ermenegildo Zegna Group Reports Strong First Quarter 2022 Revenues
Ermenegildo Zegna N.V. (NYSE:ZGN) reported Q1 2022 revenues of €377.6 million, a 25.4% increase year-over-year, attributed to robust sales across its Zegna and Thom Browne brands. Zegna's One Brand Strategy promotes luxury leisurewear, resulting in a strong performance in key markets, notably North America, where revenues surged 85.1%. Despite positive growth, the company cautioned about challenges posed by geopolitical tensions and COVID-19 restrictions, particularly in Greater China. The company forecasts low-teens revenue growth for 2022 and invites investors to its Capital Markets Day on May 17.
- Q1 2022 revenues increased by 25.4% year-over-year to €377.6 million.
- Zegna segment revenues rose 27.1% to €283.5 million.
- Thom Browne revenues increased by 22.3% to €98.1 million.
- North American revenues surged by 85.1%, reflecting strong demand.
- DTC channel sales grew 23.1% year-over-year to €218.1 million.
- Greater China region saw a slowdown due to COVID-19 restrictions.
- Company faces geopolitical uncertainties impacting the outlook for 2022.
Insights
Analyzing...
Strong Overall Performance Continues & 2022 Outlook Confirmed
-
1Q 2022 Revenues of
€377.6 million , up25.4% 1 Year-over-Year - Zegna’s One Brand Strategy Continues to Drive Growth with Thom Browne Maintaining Strong Momentum
- 2022 Outlook Confirmed with Low-teens Revenue Growth Expected and Continued Improvement to Adjusted EBIT2
Ermenegildo “Gildo” Zegna, Chairman and CEO of the
He added: “Ours is a multi-year journey, and as we continue to monitor ongoing global developments – especially the recent COVID-19 spike in
Highlights from First Quarter 2022 Revenues
Zegna’s One Brand strategy and continued focus on luxury leisurewear have allowed Zegna to continue to strengthen its position as a global leader in luxury menswear. For its First Quarter 2022,
Zegna-branded products, which include apparel, bags, shoes and leather goods, as well as licensed goods and royalties, posted revenues that were up
Growth was strong across most geographies, with North American revenues increasing
DTC channel sales grew
Revenues in the Wholesale channel grew by
Fiscal Year 2022 Outlook
The start of 2022 has been marked by considerable geopolitical uncertainty, adding to the volatility already present due to the ongoing global health crisis. Assuming no further deterioration or geographic extension of the war in
Capital Markets Day on
The Company will host an investor day on
A copy of the presentation and the link to the (audio) webcast will be available on the Company’s website at ir.zegnagroup.com before the presentation begins on 17 May.
1 All growth rates in this release are year-over-year and are expressed at actual foreign exchange rates.
2 Adjusted EBIT is a non-IFRS financial measure. See the Non-IFRS Financial Measures section starting on page 3 of this communication for the definition of such non-IFRS measure.
3 The Zegna Group’s Plan was published at the time of the announcement of the business combination between the Company and
Non-IFRS Financial Measures
Zegna’s management monitors and evaluates operating and financial performance using several non-IFRS financial measures: among which adjusted earnings before interest and taxes (“Adjusted EBIT”). Zegna’s management believes that this non-IFRS financial measure provides useful and relevant information regarding Zegna’s financial performance and improves the ability of management and investors to assess and compare the financial performance of Zegna with that of other companies. It also provides 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
Adjusted EBIT is defined as profit or loss before income taxes plus financial income, financial expenses, exchange losses/(gains), result from investments accounted for using the equity method, impairments of 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, including, for one or all of the years presented, costs related to the Business Combination with
About
Founded in 1910 in Trivero,
Forward Looking Statements
This communication, including the section “Fiscal Year 2022 Outlook”, contains forward-looking statements that are based on beliefs and assumptions and on information currently available to the Company. 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” 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. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this communication, the Company cautions you that these statements are based on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. In addition, risks and uncertainties are described in the Company’s filings with the
First Quarter 2022 Unaudited Revenues - Breakdown by Segment
(Euro thousands in Actual FX) |
Q1 2022A
|
Q1 2021A
|
Δ% vs 2021A |
|||
Group Revenues | 377,579 |
301,194 |
+ |
|||
- Zegna segment | 283,523 |
223,056 |
+ |
|||
- |
98,128 |
80,219 |
+ |
|||
- Eliminations | (4,072) |
(2,081) |
n.s. |
First Quarter 2022 Unaudited Revenues - Breakdown by Geography
(Euro thousands in Actual FX) |
Q1 2022A
|
Q1 2021A
|
Δ% vs 2021A |
||||
Group Revenues | 377,579 |
301,194 |
+ |
||||
EMEA 1 | 134,456 |
96,812 |
+ |
||||
- of which |
64,091 |
48,159 |
+ |
||||
- of which |
10,970 |
5,177 |
+ |
||||
61,803 |
33,381 |
+ |
|||||
- of which |
56,933 |
28,868 |
+ |
||||
5,665 |
2,995 |
+ |
|||||
APAC 4 | 174,816 |
167,259 |
+ |
||||
- of which |
141,980 |
141,570 |
+ |
||||
- of which |
14,139 |
12,812 |
+ |
||||
Other 6 | 839 |
747 |
+ |
1. EMEA includes
2.
3.
4. APAC includes the
5. For Zegna’s reporting purposes the
6. Other revenues mainly include royalties.
Note: Revenues are after eliminations.
First Quarter 2022 Unaudited Revenues - Breakdown by Product Line
(Euro thousands in Actual FX) |
Q1 2022A
|
Q1 2021A
|
Δ% vs 2021A |
|||
Group Revenues | 377,579 |
301,194 |
+ |
|||
- Zegna branded products 1 | 223,979 |
183,483 |
+ |
|||
- |
97,937 |
80,223 |
+ |
|||
- Textile | 30,244 |
18,378 |
+ |
|||
- Third Party Brands | 24,402 |
15,558 |
+ |
|||
- Agnona | 25 |
139 |
n.s |
|||
- Other | 992 |
3,413 |
( |
1. Zegna branded products include apparel, bags, shoes and small and large leather goods, as well as licensed goods and royalties
Note: Revenues are after eliminations.
First Quarter 2022 Unaudited Revenues - Breakdown by Channel
(Euro thousands in Actual FX) |
Q1 2022A
|
% on revenues |
Q1 2021A
|
% on revenues |
Δ% vs 2021A |
|||||
Group Revenues | 377,579 |
|
301,194 |
|
+ |
|||||
- DTC Zegna branded products 1 | 183,909 |
149,228 |
+ |
|||||||
- DTC Thom Browne | 34,181 |
27,947 |
+ |
|||||||
Total Direct to Consumer (DTC) | 218,090 |
|
177,175 |
|
+ |
|||||
- Wholesale Zegna branded products 1 | 40,070 |
34,255 |
+ |
|||||||
- Wholesale Thom Browne | 63,756 |
52,276 |
+ |
|||||||
- Wholesale Third Party Brands and Textile | 54,646 |
33,936 |
+ |
|||||||
- Wholesale Agnona | 25 |
139 |
( |
|||||||
Total Wholesale | 158,497 |
|
120,606 |
|
+ |
|||||
Other | 992 |
|
3,413 |
|
( |
1. Zegna branded products include apparel, bags, shoes and small and large leather goods, as well as licensed goods and royalties
Note: Revenues are after eliminations.
Monobrand Store Network as of
as of |
as of |
as of |
||||||||||||||||
# Stores | ZEGNA |
|
GROUP |
ZEGNA |
|
GROUP |
ZEGNA |
|
GROUP |
|||||||||
EMEA | 69 |
9 |
78 |
69 |
9 |
78 |
71 |
6 |
77 |
|||||||||
50 |
5 |
55 |
50 |
5 |
55 |
39 |
4 |
43 |
||||||||||
APAC | 125 |
37 |
162 |
126 |
38 |
164 |
128 |
28 |
156 |
|||||||||
DTC | 244 |
51 |
295 |
245 |
52 |
297 |
238 |
38 |
276 |
|||||||||
EMEA | 88 |
5 |
93 |
89 |
5 |
94 |
99 |
10 |
109 |
|||||||||
73 |
3 |
76 |
74 |
3 |
77 |
82 |
3 |
85 |
||||||||||
APAC | 32 |
30 |
62 |
32 |
30 |
62 |
31 |
23 |
54 |
|||||||||
Wholesale | 193 |
38 |
231 |
195 |
38 |
233 |
212 |
36 |
248 |
|||||||||
Total | 437 |
89 |
526 |
440 |
90 |
530 |
450 |
74 |
524 |
Monobrand store count includes our DOSs (which are divided into boutiques and outlets) and our Wholesale monobrand stores (including also monobrand franchisees).
As of
View source version on businesswire.com: https://www.businesswire.com/news/home/20220505005199/en/
Investor Relations
francesca.dipasquantonio@zegna.com
+39 335 5837669
Media
domenico.galluccio@zegna.com
+39 335 538 7288
briley@brunswickgroup.com / lfornasiero@brunswickgroup.com / mjensen@brunswickgroup.com
+1 (917) 755-1454 / +39 335 718 7205 / +33 (0) 6 49 09 39 54
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