Zegna Group 2021 sales boosted by US and China

Thom Browne parent company Zegna Group saw an increase in full-year sales in 2021 boosted by “significant growth” in the US and China.

The Italian luxury group, which late last year floated on the New York Stock Exchange, said sales increased to 1.29 billion euros in 2021, a 27 percent increase from the prior year, but still 2 percent below pre-pandemic 2019 levels.

Sales were driven by the China and US markets, which grew year-over-year by 34 percent to 589 million euros, and by 53 percent to 176 million euros, respectively.

Compared to 2019 levels, sales in China were up 23 percent, but in the US were down 14 percent.

Thom Browne shines

The Thom Browne brand, which Zegna acquired in 2018, performed particularly well, with sales of 264 million euros, up 47 percent compared to a year earlier, and up 64 percent compared to two years ago.

Meanwhile, sales at the Zegna brand came in at 1.03 billion euros, a 23 percent increase year-over-year, but an 11 percent decrease year-over-two-years.

The group expects to report a 2021 adjusted operating profit margin of around 10 percent, up from 9 percent in 2020. It said it expects that margin to further improve in 2022.

Ermenegildo Zegna, the group’s chair and CEO, said the results confirm its position as “a global leader in the luxury market”.

He said: “By focusing on our legacy brand - which is going through a major rebranding - and on the further strengthening of our one-of-a-kind Made in Italy luxury textile platform coupled with the dynamic pace at which Thom Browne continues, we were able to deliver a strong financial performance in 2021.”