Ermenegildo Zegna: sales up, profits down in 2015

By

Dominique Muret

Published
Apr 5, 2016

Ermenegildo Zegna's revenue has grown by 4% in 2015, while in the previous year there had been a downturn in sales. The Italian textile group specialised in luxury menswear continues to expand, with a revenue of €1.261 billion compared to €1.21 billion in 2014.

The company has declared itself satisfied, bearing in mind the "unforeseeable geopolitical and financial disruptions", even though its margins are continually falling.

Last year, the Piedmont-based company generated a net income of €45 million, compared to €71 million a year earlier, posting a 36.6% decline (in 2014 the decrease was 38%). EBITDA reached €146 million, compared to €185 million in 2014 (-21%). The figures were reported in a press release on the occasion of the publication of the company's annual results.

Last year Ermenegildo Zegna notably invested in its Italian manufacturing facilities, "concluding a strategic industrial reorganisation", stated the group. A workshop for formal wear was built in San Pietro Mosezzo, near Novara (Italy), adding to the three other manufacturing sites dedicated to casual wear and accessories.

The label is also engaged "in an ambitious omni-channel programme", in order to offer its customers an integrated experience featuring e-commerce and Zegna's physical sales channels.

Exports still account for 90% of Ermenegildo Zegna's total sales, with Europe and America gaining ground over Asia, even though China continues to be the leading market, followed by the USA.

At the end of 2015, the label, whose creative direction was recently entrusted to Alessandro Sartori, was operating 523 mono-brand stores, 307 of them directly owned. In 2014 they were 525, 298 of them directly owned.