Zegna Q4 sales fall on China COVID curbs, staff shortages

Ermenegildo Zegna NV

25/01/2023 13:06

MILAN, Jan 25 (Reuters) - Italian fashion group
Ermenegildo Zegna  JN0.F  on Wednesday posted a 2.9% fall in
fourth-quarter revenue at constant exchange rates hurt by COVID
curbs in China.
    The company, which is listed in New York, added that after
restrictions were eased in early December, it also experienced
temporary store closures due to staff shortages.
    It said operations have since normalised, returning to more
"predictable activities". 
    "I am optimistic about China's reopening as we are
witnessing a rebound in our business and the industry at large,"
Chairman and Chief Executive Gildo Zegna said in a statement. 
    The group said its 2022 revenue rose 11% at constant
exchange rates to 1.49 billion euros ($1.62 billion), according
to preliminary data. 
    Its guidance was for "mid-teens" growth. 
    The group said it expects a "moderate improvement" in
adjusted operating profit for 2022 despite the headwinds in
China. 
    It had previously said it expected a "solid improvement" in
adjusted earnings before interests and taxes (EBIT). 
    ($1 = 0.9207 euros)
 (Reporting by Elisa Anzolin; editing by Jason Neely)
 ((elisa.anzolin@thomsonreuters.com; 0039 0266129692;))