Ermenegildo Zegna Group’s Robust Growth Continues in the First Half of 2023
-
First half 2023 Revenues1 reach
€903 million , up23.9% year-over-year.
-
Organic growth2 was
21.5% in the first half of 2023, with double-digit organic growth for both the Zegna and Thom Browne segments.
-
Acceleration in the second quarter with year-over-year growth of
35.1% and organic growth of24.5% , led by solid double-digit organic performance in all major geographies and notable strength in the US.
-
Direct-to-consumer year-over-year growth (
36.3% for the first half and48.1% for the second quarter of 2023) continues to be dynamic across all regions for Zegna and Thom Browne, with both posting organic growth of around30% for the first half of 2023 and of36.2% and33.7% in the second quarter of 2023, respectively.
- Robust first half supports the Group’s FY 2023 and mid-term outlook.
Unaudited revenues for the second quarter of 2023 were
Ermenegildo “Gildo” Zegna, Chairman and CEO of the Zegna Group, said: “The second quarter of 2023 has built on the Group’s excellent performance since the beginning of the year. Our brands continue to resonate strongly with customers worldwide, with a positive rebound in
“I am particularly pleased that we are gaining market share, and I am confident about the strong opportunities ahead as the menswear segment grows globally with both existing and new audiences. Our ZEGNA, Thom Browne, and TOM FORD FASHION brands all offer distinctive styles that cater to a wide range of shoppers and occasions, allowing us to be leaders across the luxury market. The strong execution of the One Brand strategy has made ZEGNA a global favorite, with successful collections which include staple Luxury Leisurewear items and our signature Triple Stitch™ sneaker. At Thom Browne, the work being done to strengthen womenswear continues to show great progress and the category is now outpacing the growth of menswear. Meanwhile, we have started our journey to make TOM FORD FASHION among the top ten luxury fashion names in the world. The Group’s financial progress underpins our confidence that we are comfortably on track to meet our previously announced 2025 financial ambitions.”
“I would also like to welcome Lelio Gavazza to the Zegna Group as Chief Executive Officer of TOM FORD FASHION. As we continue the integration of TOM FORD FASHION into the Group, I look forward to working with Lelio once he starts his new role in September. In partnership with the Estée Lauder Companies, we will build upon Tom’s legacy to grow this iconic, one-of-a-kind luxury brand globally.”
“Finally, our family’s commitment to social responsibility over 113 years was once again highlighted last week when we celebrated the 10th anniversary of the Ermenegildo Zegna Founder’s Scholarship, which enables Italian graduates to pursue their postgraduate studies abroad and return home. This program is a particular point of pride for me as it brings back Italian talents to contribute to the future of Italy.”
________________________________ |
1 Throughout this press release, revenues for the first half of 2023 and the second quarter of 2023 are preliminary and unaudited. |
2 Organic growth is a non-IFRS financial measure. See the Non-IFRS Financial Measures section starting on page 12 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 12 of this press release for the definition of such non-IFRS financial measure. |
Highlights from the Second Quarter of 2023 and Recent Events
-
ZEGNA: Oasi di Lino, New Store Openings and Agreement with GBB
-
On June 19, during
Milan men’s fashion week, ZEGNA brought Oasi Zegna to Piazza San Fedele in the heart ofMilan . The brand’s collection showcased and was inspired by L’Oasi di Lino, a fabric made inItaly from flax plants grown in Normandy,France . Zegna commits to certifying Oasi Lino fibers as100% traceable by 2024.
-
In the first half of the year, ZEGNA opened seven net new direct-to-consumer stores, bringing the total to 246. Store productivity also increased meaningfully over that period, driven by several factors including higher traffic, an increase in the number of transactions and in the average ticket, and store right-sizing.
-
On July 26, 2023, Zegna granted Give Back Beauty International SA exclusivity for the manufacture and sale of "Zegna” branded fragrances and cosmetics.
-
On June 19, during
-
Thom Browne: Paris Couture Debut and New Store Openings
-
On July 3, Thom Browne presented a unique, highly anticipated Haute Couture collection in
Paris , celebrating the brand’s 20th anniversary. The collection, which reflected the brand’s vision and Thom’s singular style, has received praise from critics, the media, celebrities and couture clients.
-
In the first half of the year, Thom Browne opened three net new direct-to-consumer stores, bringing the total to 66, up from 53 a year ago and 63 as of December 31, 2022. The three new stores in the APAC region – two in
China and one inJapan – highlight the importance of the region to the brand and Thom Browne’s continued success and desirability.
-
As of July 1, Thom Browne began directly operating its Korean business and its network of 17 stores. The business is now wholly owned through Thom Browne Korea, a newly formed and wholly owned company, and will be operated in the region with external support from Samsung, previously its franchise partner.
-
On July 3, Thom Browne presented a unique, highly anticipated Haute Couture collection in
-
TOM FORD FASHION: Acquisition Completed, License Begins and New CEO Appointed
-
On April 28, Zegna Group completed the acquisition of Tom Ford International LLC, the company that owns and operates TOM FORD FASHION. Upon closing, Zegna became a long-term licensee of The Estée Lauder Companies, the sole owner of TOM FORD brand, trademarks and other intellectual property rights, for all TOM FORD men’s and women’s fashion as well as accessories and underwear, fine jewelry, childrenswear, textile, and home design products.
-
On July 18, the appointment of Lelio Gavazza as the new CEO of TOM FORD FASHION was announced and he will be starting his role on September 18, 2023.
-
The addition of TOM FORD FASHION brings 51 direct-to-consumer and 70 monobrand wholesale locations to the Group’s network across the
U.S. ,Europe , and APAC.
-
Peter Hawkings’ debut Womenswear fashion collection for Spring/Summer 2024 will take place in
Milan during Fashion Week in September 2023.
-
On April 28, Zegna Group completed the acquisition of Tom Ford International LLC, the company that owns and operates TOM FORD FASHION. Upon closing, Zegna became a long-term licensee of The Estée Lauder Companies, the sole owner of TOM FORD brand, trademarks and other intellectual property rights, for all TOM FORD men’s and women’s fashion as well as accessories and underwear, fine jewelry, childrenswear, textile, and home design products.
-
Our Road to Sustainability: SBTi Targets Approval and Animal Welfare Policy
-
In August 2022, Zegna Group submitted its greenhouse gas emissions reduction targets to the Science-Based Targets initiative (SBTi), which approved the targets in May 2023. The Group is targeting net-zero greenhouse gas emissions (GHG) across its value chain by 2050 from a 2021 base year. In the near term, the Group has committed to reducing absolute scope 3 GHG emissions from purchased goods and services, fuel and energy-related activities, employee commuting, and investments by
50.4% by 2032.
-
On May 17, Zegna Group adopted its new animal welfare policy as part of its commitment to creating the best products from the highest-quality materials while ensuring the well-being and longevity of the natural environment and its inhabitants.
-
In August 2022, Zegna Group submitted its greenhouse gas emissions reduction targets to the Science-Based Targets initiative (SBTi), which approved the targets in May 2023. The Group is targeting net-zero greenhouse gas emissions (GHG) across its value chain by 2050 from a 2021 base year. In the near term, the Group has committed to reducing absolute scope 3 GHG emissions from purchased goods and services, fuel and energy-related activities, employee commuting, and investments by
-
Made in
Italy Luxury Textile Laboratory Platform: Acquisition of Minority Stake in Luigi Fedeli e Figlio
-
On June 6, Zegna Group and Prada Group announced the acquisition of
30% of Luigi Fedeli e Figlio, the world-renowned maker of fine Italian knitwear and yarns, with each group acquiring15% of the company. The historic Italian company’s focus on quality and sustainability aligns perfectly with Zegna Group’s values and commitment to preserving and enhancing the craftsmanship of Made inItaly . This transaction is subject to customary closing conditions, including antitrust approvals.
-
On June 6, Zegna Group and Prada Group announced the acquisition of
Review of Revenues for the First Half 2023 and the Second Quarter 2023
In the second quarter of 2023, Zegna Group generated revenues of
Revenues by Segment
Zegna Segment: For the second quarter of 2023, revenues for the Zegna segment amounted to
Thom Browne Segment: For the second quarter of 2023, revenues for the Thom Browne segment amounted to
The growth of the Thom Browne segment in the second quarter of 2023 was driven by robust direct-to-consumer performance, which offset the slight decline in wholesale. On top of comparable stores growth, direct-to-consumer performance was also supported by the expansion of the brand’s store network, which added 13 net new stores since June 30, 2022.
Tom Ford Fashion Segment: Effective April 29, 2023, concurrently with the consolidation of Tom Ford International LLC in the Group’s financial statements, Tom Ford Fashion represents as a new operating and reporting segment of the Group. The Tom Ford Fashion segment includes all activities related to TOM FORD FASHION, from collection creation and development to merchandising, through to production, as well as retail and wholesale distribution. From April 29, 2023 to June 30, 2023, the segment reported revenues of
Revenues by Product Line
Zegna-branded Products: Revenues for Zegna-branded products were at
The Made-to-Measure business continued to perform well, and together with sneakers and luxury leisurewear, have all shown consistent growth.
Thom Browne: Revenues for Thom Browne were at
The growth in Thom Browne revenues came from all product categories, with womenswear outperforming men’s and kid’s products also being a dynamic performer.
Textile: Textile revenues were flat at
Third-Party Brands: The performance in the second quarter of the Third-Party Brands product line reflects the end of the Tom Ford International distribution license. Revenues for the second quarter of 2023 were
Revenues by Channel
The direct-to-consumer channel’s momentum was robust across both Zegna and Thom Browne, which reported in the second quarter of 2023, year-over-year growth of
In the second quarter of 2023, Zegna’s branded products wholesale channel showed robust growth of
Revenues by Geography
The Group saw robust global growth across all regions during the second quarter of 2023, driven by all geographies.
Early signs of strong activity from Chinese consumers drove growth in the
Group revenues from the EMEA region for the second quarter were at
In the
In
________________________________ |
4 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. |
Outlook
On May 17, 2022, at its first Capital Markets Day, the Group announced its financial goals for the medium term, which management defines as the end of fiscal year 2025. Within this time frame, the Group is aiming for annual revenues to exceed
***
Next Scheduled Announcement
The next scheduled announcement will be on September 13, 2023, in connection with the release of the Group’s semi-annual condensed consolidated financial statements at and for the six months ended June 30, 2023. 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 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 SEC. These filings may identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Most of these factors are outside the Company’s control and are difficult to predict. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by the Company and its directors, officers or employees or any other person that the Company will achieve its objectives and plans in any specified time frame, or at all. The forward-looking statements in this communication represent the views of Zegna as of the date of this communication. Subsequent events and developments may cause that view to change. However, while Zegna may elect to update these forward-looking statements at some point in the future, the Company disclaims any obligation to update or revise publicly forward-looking statements. You should, therefore, not rely on these forward-looking statements as representing the views of the Company as of any date subsequent to the date of this communication.
***
Second Quarter 2023 and First Half 2023 - Preliminary Unaudited Group Revenues
Group Revenues by Segment (Preliminary and Unaudited)
|
|
|
|
|
H1 2023 vs H1 2022 |
|
|
|
|
|
Q2 2023 vs Q2 2022 |
||||||||
(€ thousands, except percentages) |
H1 2023 |
|
H1 2022 |
|
Reported
|
|
Constant
|
|
Organic
|
|
Q2 2023 |
|
Q2 2022 |
|
Reported
|
|
Constant
|
|
Organic
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
903,059 |
|
728,993 |
|
|
|
|
|
|
|
474,747 |
|
351,414 |
|
35.1 % |
|
37.4 % |
|
24.5 % |
Zegna segment |
651,755 |
|
552,966 |
|
|
|
|
|
|
|
332,431 |
|
269,443 |
|
23.4 % |
|
25.2 % |
|
28.2 % |
Thom Browne segment |
207,959 |
|
185,769 |
|
|
|
|
|
|
|
94,708 |
|
87,641 |
|
8.1 % |
|
10.8 % |
|
10.8 % |
Tom Ford Fashion segment |
64,027 |
|
— |
|
n.m. |
|
n.m. |
|
n.m. |
|
64,027 |
|
— |
|
n.m. |
|
n.m. |
|
n.m. |
Eliminations |
(20,682) |
|
(9,742) |
|
n.m. |
|
n.m. |
|
n.m. |
|
(16,419) |
|
(5,670) |
|
n.m. |
|
n.m. |
|
n.m. |
___________________________________ |
(*) Throughout this section “n.m.” means not meaningful |
The tables below show a reconciliation of revenue growth for the six months ended June 30, 2023 and for the three months ended June 30 and March 31, 2023 to organic growth for the same periods by segment and at the Group level.
|
H1 2023 vs H1 2022 |
||||||||
|
Revenues Growth |
|
Foreign exchange |
|
Acquisitions and
|
|
Structural changes
|
|
Organic Growth |
|
|
|
|
||||||
Group |
23.9 % |
|
(0.8) % |
|
8.8 % |
|
(5.6) % |
|
21.5 % |
Zegna segment |
17.9 % |
|
(0.5) % |
|
1.4 % |
|
(6.8) % |
|
23.8 % |
Thom Browne segment |
11.9 % |
|
(1.7) % |
|
— % |
|
|
|
13.6 % |
Tom Ford Fashion segment |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
Q2 2023 vs Q2 2022 |
||||||||
|
Revenues Growth |
|
Foreign exchange |
|
Acquisitions and
|
|
Structural changes
|
|
Organic Growth |
|
|
|
|
||||||
Group |
35.1 % |
|
(2.3) % |
|
18.4 % |
|
(5.5) % |
|
24.5 % |
Zegna segment |
23.4 % |
|
(1.8) % |
|
2.7 % |
|
(5.7) % |
|
28.2 % |
Thom Browne segment |
8.1 % |
|
(2.7) % |
|
— % |
|
— % |
|
10.8 % |
Tom Ford Fashion segment |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
Q1 2023 vs Q1 2022 |
||||||||
|
Revenues Growth |
|
Foreign exchange |
|
Acquisitions and
|
|
Structural changes
|
|
Organic Growth |
|
|
|
|
||||||
Group |
13.4 % |
|
0.3 % |
|
— % |
|
(5.8) % |
|
18.9 % |
Zegna segment |
12.6 % |
|
0.7 % |
|
— % |
|
(7.8) % |
|
19.7 % |
Thom Browne segment |
15.4 % |
|
(0.7) % |
|
— % |
|
— % |
|
16.1 % |
Tom Ford Fashion segment |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
Group Revenues by Product Line (Preliminary and Unaudited)
|
|
|
|
|
H1 2023 vs H1 2022 |
|
|
|
|
|
Q2 2023 vs Q2 2022 |
||||||||
(€ thousands, except percentages) |
H1 2023 |
|
H1 2022 |
|
Reported
|
|
Constant
|
|
Organic
|
|
Q2 2023 |
|
Q2 2022 |
|
Reported
|
|
Constant
|
|
Organic
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenues |
903,059 |
|
728,993 |
|
|
|
|
|
|
|
474,747 |
|
351,414 |
|
|
|
|
|
|
Zegna branded products |
541,319 |
|
425,252 |
|
|
|
|
|
|
|
269,430 |
|
201,273 |
|
|
|
|
|
|
Thom Browne |
206,951 |
|
185,166 |
|
|
|
|
|
|
|
94,399 |
|
87,229 |
|
|
|
|
|
|
Tom Ford Fashion |
64,015 |
|
— |
|
n.m. |
|
n.m. |
|
n.m. |
|
64,015 |
|
— |
|
n.m. |
|
n.m. |
|
n.m. |
Textile |
73,072 |
|
68,968 |
|
|
|
|
|
|
|
39,254 |
|
38,724 |
|
|
|
|
|
|
Third Party Brands |
15,477 |
|
47,341 |
|
( |
|
( |
|
( |
|
6,567 |
|
22,939 |
|
( |
|
( |
|
( |
Other |
2,225 |
|
2,266 |
|
( |
|
( |
|
( |
|
1,082 |
|
1,249 |
|
( |
|
( |
|
( |
________________________________________ |
Zegna branded products include apparel, bags, shoes and small and large leather goods, as well as licensed goods and royalties. |
The tables below show a reconciliation of revenue growth for the six months ended June 30, 2023 and for the three months ended June 30, 2023 to organic growth for the same periods by product line and at the Group level.
|
H1 2023 vs H1 2022 |
||||||||
|
Revenues Growth |
|
Foreign exchange |
|
Acquisitions and
|
|
Structural changes
|
|
Organic Growth |
|
|
|
|
||||||
Group |
23.9 % |
|
(0.8) % |
|
8.8 % |
|
(5.6) % |
|
21.5 % |
Zegna branded products |
27.3 % |
|
(1.1) % |
|
— % |
|
— % |
|
28.4 % |
Thom Browne |
11.8 % |
|
(1.6) % |
|
— % |
|
— % |
|
13.4 % |
Tom Ford Fashion |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
Textile |
6.0 % |
|
0.8 % |
|
(0.1) % |
|
— % |
|
5.3 % |
Third Party Brands |
(67.3) % |
|
0.8 % |
|
(0.1) % |
|
(63.6) % |
|
(4.4) % |
Other |
(1.8) % |
|
0.5 % |
|
(0.2) % |
|
— % |
|
(2.1) % |
|
Q2 2023 vs Q2 2022 |
||||||||
|
Revenues Growth |
|
Foreign exchange |
|
Acquisitions and
|
|
Structural changes
|
|
Organic Growth |
|
|
|
|
||||||
Group |
35.1 % |
|
(2.3) % |
|
18.4 % |
|
(5.5) % |
|
24.5 % |
Zegna branded products |
33.9 % |
|
(3.1) % |
|
— % |
|
— % |
|
37.0 % |
Thom Browne |
8.2 % |
|
(2.8) % |
|
— % |
|
— % |
|
11.0 % |
Tom Ford Fashion |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
Textile |
1.4 % |
|
1.1 % |
|
(0.3) % |
|
— % |
|
0.6 % |
Third Party Brands |
(71.4) % |
|
0.4 % |
|
— % |
|
(41.1) % |
|
(30.7) % |
Other |
(13.4) % |
|
(0.3) % |
|
(0.4) % |
|
— % |
|
(12.7) % |
________________________________________ |
Zegna branded products include apparel, bags, shoes and small and large leather goods, as well as licensed goods and royalties. |
Group Revenues by Sales Channel (Preliminary and Unaudited)
|
|
|
|
|
|
|
|
|
H1 2023 vs H1 2022 |
|
|
|
|
|
|
|
|
|
Q2 2023 vs Q2 2022 |
||||||||
(€ thousands, except percentages) |
H1 2023 |
|
% of
|
|
H1 2022 |
|
% of
|
|
Reported
|
|
Constant
|
|
Organic
|
|
Q2 2023 |
|
% of
|
|
Q2 2022 |
|
% of
|
|
Reported
|
|
Constant
|
|
Organic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Revenues |
903,059 |
|
|
|
728,993 |
|
|
|
|
|
|
|
|
|
474,747 |
|
|
|
351,414 |
|
|
|
|
|
|
|
|
Direct to Consumer (DTC) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Zegna branded products |
465,710 |
|
|
|
361,850 |
|
|
|
|
|
|
|
|
|
236,114 |
|
|
|
177,941 |
|
|
|
|
|
|
|
|
Thom Browne |
82,924 |
|
|
|
66,174 |
|
|
|
|
|
|
|
|
|
40,075 |
|
|
|
31,993 |
|
|
|
|
|
|
|
|
Tom Ford Fashion |
34,751 |
|
|
|
— |
|
|
|
—% |
|
n.m. |
|
n.m. |
|
34,751 |
|
|
|
— |
|
|
|
—% |
|
n.m. |
|
n.m. |
Total Direct to Customer (DTC) |
583,385 |
|
|
|
428,024 |
|
|
|
|
|
|
|
|
|
310,940 |
|
|
|
209,934 |
|
|
|
|
|
|
|
|
Wholesale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Zegna branded products |
75,609 |
|
|
|
63,402 |
|
|
|
|
|
|
|
|
|
33,316 |
|
|
|
23,332 |
|
|
|
|
|
|
|
|
Thom Browne |
124,027 |
|
|
|
118,992 |
|
|
|
|
|
|
|
|
|
54,324 |
|
|
|
55,236 |
|
|
|
( |
|
( |
|
( |
Tom Ford Fashion |
29,264 |
|
|
|
— |
|
|
|
n.m. |
|
n.m. |
|
n.m. |
|
29,264 |
|
|
|
— |
|
|
|
n.m. |
|
n.m. |
|
n.m. |
Third Party Brands and Textile |
88,549 |
|
|
|
116,309 |
|
|
|
( |
|
( |
|
|
|
45,821 |
|
|
|
61,663 |
|
|
|
( |
|
( |
|
( |
Total Wholesale |
317,449 |
|
|
|
298,703 |
|
|
|
|
|
|
|
|
|
162,725 |
|
|
|
140,231 |
|
|
|
|
|
|
|
|
Other |
2,225 |
|
|
|
2,266 |
|
|
|
n.m. |
|
n.m. |
|
n.m. |
|
1,082 |
|
|
|
1,249 |
|
|
|
n.m. |
|
n.m. |
|
n.m. |
______________________________________ |
Zegna branded products include apparel, bags, shoes and small and large leather goods, as well as licensed goods and royalties. |
The tables below show a reconciliation of revenue growth for the six months ended June 30, 2023 and for the three months ended June 30, 2023 to organic growth for the same periods by sales channel and at the Group level.
H1 2023 vs H1 2022 | |||||
Revenues Growth |
Foreign Exchange |
Acquisitions and
|
Structural changes
|
Organic Growth |
|
Group | 23.9 % |
(0.8)% |
8.8 % |
(5.6)% |
21.5 % |
Direct to Consumer (DTC) | |||||
Zegna branded products | 28.7 % |
(1.6)% |
— % |
— % |
30.3 % |
Thom Browne | 25.3 % |
(5.3)% |
— % |
— % |
30.6 % |
Tom Ford Fashion | n.m. | n.m. | n.m. | n.m. | n.m. |
Total Direct to Customer (DTC) | 36.3 % |
(2.3)% |
8.2 % |
— % |
30.4 % |
Wholesale | |||||
Zegna branded products | 19.3 % |
1.4 % |
— % |
— % |
17.9 % |
Thom Browne | 4.2 % |
— % |
— % |
— % |
4.2 % |
Tom Ford Fashion | n.m. | n.m. | n.m. | n.m. | n.m. |
Third Party Brands and Textile | (23.9)% |
1.0 % |
(0.1)% |
(29.0)% |
4.2 % |
Total Wholesale | 6.3 % |
0.8 % |
9.7 % |
(11.8)% |
7.6 % |
Other | n.m. | n.m. | n.m. | n.m. | n.m. |
|
Q2 2023 vs Q2 2022 |
||||||||
|
Revenues Growth |
|
Foreign Exchange |
|
Acquisitions and
|
|
Structural changes
|
|
Organic Growth |
|
|
|
|
|
|||||
Group |
|
|
( |
|
|
|
( |
|
|
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 Customer (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. |
______________________________________ |
Zegna branded products include apparel, bags, shoes and small and large leather goods, as well as licensed goods and royalties. |
Group Revenues by Geographical Area (Preliminary and Unaudited)
|
|
|
|
|
H1 2023 vs H1 2022 |
|
|
|
|
|
Q2 2023 vs Q2 2022 |
||||||||
(€ thousands, except percentages) |
H1 2023 |
|
H1 2022 |
|
Reported
|
|
Constant
|
|
Organic
|
|
Q2 2023 |
|
Q2 2022 |
|
Reported
|
|
Constant
|
|
Organic
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenues |
903,059 |
|
728,993 |
|
23.9 % |
|
|
|
|
|
474,747 |
|
351,414 |
|
35.1 % |
|
|
|
|
EMEA (1) |
322,680 |
|
260,627 |
|
23.8 % |
|
|
|
|
|
172,572 |
|
126,171 |
|
36.8 % |
|
|
|
|
of which |
151,464 |
|
125,996 |
|
20.2 % |
|
|
|
|
|
77,030 |
|
61,905 |
|
24.4 % |
|
|
|
|
of which |
28,823 |
|
23,544 |
|
22.4 % |
|
|
|
|
|
18,442 |
|
12,574 |
|
46.7 % |
|
|
|
|
of which |
31,906 |
|
21,745 |
|
46.7 % |
|
|
|
|
|
15,506 |
|
10,377 |
|
49.4 % |
|
|
|
|
|
174,376 |
|
135,275 |
|
28.9 % |
|
|
|
|
|
108,742 |
|
73,472 |
|
48.0 % |
|
|
|
|
of which |
156,747 |
|
124,291 |
|
26.1 % |
|
|
|
|
|
98,712 |
|
67,358 |
|
46.5 % |
|
|
|
|
|
15,736 |
|
12,525 |
|
25.6 % |
|
|
|
|
|
8,963 |
|
6,860 |
|
30.7 % |
|
|
|
|
APAC (4) |
389,025 |
|
318,825 |
|
22.0 % |
|
|
|
|
|
183,772 |
|
144,009 |
|
27.6 % |
|
|
|
|
of which |
306,835 |
|
247,193 |
|
24.1 % |
|
|
|
|
|
142,309 |
|
105,213 |
|
35.3 % |
|
|
|
|
of which |
39,597 |
|
30,240 |
|
30.9 % |
|
|
|
|
|
20,942 |
|
16,101 |
|
30.1 % |
|
|
|
|
Other (5) |
1,242 |
|
1,741 |
|
(28.7) % |
|
( |
|
( |
|
698 |
|
902 |
|
(22.6) % |
|
( |
|
( |
________________________________________ | ||
(1) |
EMEA includes |
|
(2) |
|
|
(3) |
|
|
(4) |
APAC includes the |
|
(5) |
Other revenues mainly include royalties. |
The tables below show a reconciliation of revenue growth for the six months ended June 30, 2023 and for the three months ended June 30, 2023 to organic growth for the same periods by geographical area and at the Group level.
|
H1 2023 vs H1 2022 |
||||||||
|
Revenues Growth |
|
Foreign Exchange |
|
Acquisitions and
|
|
Structural changes
|
|
Organic Growth |
|
|
|
|
|
|||||
Group |
|
|
( |
|
|
|
( |
|
|
EMEA (1) |
|
|
( |
|
|
|
( |
|
|
of which |
|
|
|
|
|
|
( |
|
|
of which |
|
|
( |
|
|
|
( |
|
|
of which |
|
|
|
|
—% |
|
|
|
|
|
|
|
|
|
|
|
( |
|
|
of which |
|
|
|
|
|
|
( |
|
|
|
|
|
|
|
—% |
|
—% |
|
|
APAC (4) |
|
|
( |
|
|
|
( |
|
|
of which |
|
|
( |
|
|
|
( |
|
|
of which |
|
|
( |
|
|
|
( |
|
|
Other (5) |
( |
|
|
|
|
|
—% |
|
( |
|
Q2 2023 vs Q2 2022 |
||||||||
|
Revenues Growth |
|
Foreign Exchange |
|
Acquisitions and
|
|
Structural changes
|
|
Organic Growth |
|
|
|
|
|
|||||
Group |
|
|
( |
|
|
|
( |
|
|
EMEA (1) |
|
|
( |
|
|
|
( |
|
|
of which |
|
|
|
|
|
|
( |
|
|
of which |
|
|
( |
|
|
|
( |
|
|
of which |
|
|
( |
|
—% |
|
|
|
|
|
|
|
|
|
|
|
( |
|
|
of which |
|
|
|
|
|
|
( |
|
|
|
|
|
|
|
—% |
|
—% |
|
|
APAC (4) |
|
|
( |
|
|
|
( |
|
|
of which |
|
|
( |
|
|
|
( |
|
|
of which |
|
|
( |
|
|
|
( |
|
|
Other (5) |
( |
|
|
|
|
|
—% |
|
( |
________________________________________ | ||
(1) |
EMEA includes |
|
(2) |
|
|
(3) |
|
|
(4) |
APAC includes the |
|
(5) |
Other revenues mainly include royalties. |
***
Monobrand(1) Store Network at June 30, 2023
|
As of June 30, 2023 |
|
As of December 31, 2022 |
|
As of June 30, 2022 |
||||||||||||||
Stores |
Zegna |
|
Thom
|
|
Tom Ford
|
|
Group |
|
Zegna |
|
Thom
|
|
Group |
|
Zegna |
|
Thom
|
|
Group |
EMEA (2) |
69 |
|
10 |
|
4 |
|
83 |
|
65 |
|
10 |
|
75 |
|
69 |
|
10 |
|
79 |
|
55 |
|
7 |
|
11 |
|
73 |
|
53 |
|
7 |
|
60 |
|
51 |
|
5 |
|
56 |
APAC |
122 |
|
49 |
|
36 |
|
207 |
|
121 |
|
46 |
|
167 |
|
122 |
|
38 |
|
160 |
Total Direct to Customer (DTC) |
246 |
66 |
51 |
|
363 |
239 |
|
63 |
|
302 |
|
242 |
|
53 |
|
295 |
|||
EMEA (2) |
59 |
|
7 |
|
12 |
|
78 |
|
57 |
|
6 |
|
63 |
|
85 |
|
5 |
|
90 |
|
63 |
|
3 |
|
51 |
|
117 |
|
64 |
|
4 |
|
68 |
|
68 |
|
3 |
|
71 |
APAC |
35 |
|
33 |
|
7 |
|
75 |
|
35 |
|
32 |
|
67 |
|
33 |
|
30 |
|
63 |
Total Wholesale |
157 |
43 |
70 |
|
270 |
156 |
|
42 |
|
198 |
|
186 |
|
38 |
|
224 |
|||
Total |
403 |
109 |
121 |
|
633 |
395 |
|
105 |
|
500 |
|
428 |
|
91 |
|
519 |
________________________________________ | ||
(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 and revenues on an organic growth basis. 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/(gains) 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.
Constant Currency Revenues
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.
Organic Growth Revenues
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) structural 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 entities, businesses or revenue-generating assets acquired or disposed of in the current year or prior year are excluded from both periods (acquisitions and disposals refer to share or asset deals or other changes in control of subsidiaries, associates or joint ventures);
(c) structural changes in license agreements where Zegna operates as a licensee: 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) structural 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230727251537/en/
Investor Relations / Group Communications / Media
Francesca Di Pasquantonio / Clementina Tito
ir@zegna.com / corporatepress@zegna.com
Source: Zegna Group