Zegna Group posts increase in FY21 revenues and adjusted profit

Ermenegildo Zegna N.V. reported adjusted EBIT of 149 million euros, with an incidence on revenues of 11.5 percent, above the guidance of around 10 percent published on February 1, 2022.

The company said, diluted Loss per share was 0.67 euros and adjusted diluted earnings per share were 0.33 euros. Revenues increased 27 percent year-over-year, totalling approximately 1,292 million euros.

Commenting on the annual trading update, Ermenegildo “Gildo” Zegna, chairman and CEO of the Zegna Group, said in a release: “2021 was an epic year for the Zegna Group. Ours is a multi-year journey and as we continue to monitor the ongoing developments of the Covid-19 pandemic around the world, especially the recent spike in China, we are already ahead of our plan and remain positive about our growth in 2022. I am particularly excited to see our US and UAE business continue to grow while our business in Europe continues to see a post-lockdown rebound.”

Highlights of Zegna Group’s 2021 results

The company added that strong revenue growth was driven by a continued rebound of the Zegna segment, whose revenues increased 23 percent year-over-year to 1,035 million euros.

The other primary driver was the performance of the Thom Browne segment, whose revenues were up 47 percent over 2020, reaching 264 million euros.

The group’s 2021 loss for the year was 128 million euros, while adjusted profit was 75 million euros.

The group’s adjusted EBIT for the year was 149 million euros, up more than 7 times from 20 million euros recorded in 2020. Adjusted EBIT percentage incidence on revenues for the year exceeded the group’s prior guidance due to higher full-price sales in the mix and higher realised efficiencies.

Adjusted EBIT for the Zegna segment was 111 million euros and as a percentage of revenues, adjusted EBIT was 10.7 percent compared to 7.8 percent in 2019.

Zegna Group forecasts further improvement in adjusted EBIT

Commenting on the year ahead, the company further said that the start of 2022 has been marked by considerable geopolitical uncertainty, adding to the volatility of the ongoing global health crisis.

Assuming no further deterioration or geographic extension of the war in Ukraine, a normalisation of the Covid-19 pandemic in Greater China before the summer, and no other unforeseen events, the group is forecasting revenue growth in the low-teens.

The group also expects to continue to see improvement in its adjusted EBIT building on the accelerated expansion achieved in 2021, when the group delivered an adjusted EBIT of 11.5 percent as a percentage of revenues.