Zegna Group Q1 revenue up 25 percent, reaffirms FY outlook

Thom Browne parent company Zegna Group has reaffirmed its outlook for fiscal year 2022 after reporting revenue growth across geographies in the first quarter.

The NYSE-listed group reported unaudited Q1 revenue of 377.6 million euros, an increase of 25.4 percent from a year earlier as it continued its focus on luxury leisurewear.

Revenue at the group’s Zegna segment increased 27.1 percent to 283.5 million euros, while revenue in the Thom Browne segment was up 22.3 percent to 98.1 million euros.

The group saw a “consistent performance” across channels, with DTC sales up 23.1 percent and wholesale sales up 31.4 percent.

Breaking it down by geography, sales in North America surged 85.1 percent, driven by a 97.2 percent increase in the US, while sales in Latin America were up 89.1 percent.

The UK and Italy reported sales increases of 111.9 percent and 33.1 percent, respectively. For the wider EMEA region, sales increased by 38.9 percent.

In the APAC region, sales increased by 4.5 percent, with sales in Japan up 10.4 percent, and sales in Greater China up slightly by 0.3 percent.

Challenges ahead

Group chair and CEO Ermenegildo Zegna said 2022 was “off to a good start” but warned investors “it is now looking more challenging due to the combination of geopolitical, economic and health related uncertainties”.

But he added: “Both our brands are coping well in the face of these increased challenges, and we will continue to execute against our strategic objectives.”

Zegna said the company continues to monitor ongoing global developments, particularly the recent spike in Covid infections in China.

Looking ahead, the group reaffirmed its FY22 outlook and expects revenue growth in the low-teens, and a continued improvement in its adjusted EBIT.