Revenues at Zegna jump almost 20% in fourth quarter, boosted by China (updated)

Ermenegildo Zegna NV

31/01/2024 15:16

(Adds details from conference call)
       MILAN, Jan 31 (Reuters) - Italian fashion group
Ermenegildo Zegna  JN0.F  posted a 19.6% increase in organic
revenues in the fourth quarter thanks to a strong performance in
China, the company said on Wednesday. 
    Revenues in the fourth quarter reached 570 million euros 
($618 million), after the group finalised the acquisition of Tom
Ford International in April. 
    Revenues in Greater China jumped 36% organically, also
thanks to a favourable comparison base, as at the end of 2022
the region was still emerging from lockdown. 
        "We gained good traction thanks to the iconic triple
stitch," Chairman and Chief Executive Gildo Zegna told anaysts
in a conference call, referring to the group's 900 euro
sneakers. He also pointed out that something similar happened
previously in the United States. 
  
        Zegna said the sneakers had helped to attract new
customers and ensure existing ones carried on purchasing, adding
that this trend could also continue this year. 
  
        Figures last week from LVMH 
    helped to reassure investors
     about the health of the luxury sector, while up-market
Italian clothing group Brunello Cucinelli  BCU.MI  also beat
sales expectations in 2023.
        Organic revenues in Europe, Middle East and Africa rose
around 14% in the fourth quarter, while in North America they
grew 3%. 
  
        Full year revenues at Zegna totalled 1.9 billion euros
in 2023. 
    
($1 = 0.9230 euros)

 (Reporting by Elisa Anzolin, editing by Gavin Jones/Keith Weir)
 ((elisa.anzolin@thomsonreuters.com; 0039 0266129692;))