Zegna, Thom Browne sales surge on Europe, Middle East growth

 The Zegna Group of Italy reported on Friday that sales for the third quarter that just concluded increased by 27.5% as a result of expansion at both Zegna and Thom Browne in all regions, particularly in Europe, the United States, and the Middle East.

The Milan-based business reported €357 million in revenue for the third quarter, bringing the year's total to €1.09 billion, up 22.9% over the same period last year.

With revenues for the third quarter of €289 million, up 27.2% year over year, Zegna, which covers Zegna branded products as well as the textile and third-party brands product lines, continued to demonstrate "strong growth."

For the quarter ending September 30, sales of Zegna-branded goods increased 18.6% year over year to €224 million, while sales of textiles increased 33.3% to €30 million, with increases at Lanificio Ermenegildo Zegna, Bonotto, and Dondi. Thanks to significant contributions from Tom Ford and Gucci, the latter of which more than doubled in comparison to the same quarter last year, third-party brands' revenues increased 64.2% to €32 million.

Thom Browne also continued to be a "major growth driver for the firm," with quarterly revenues of €69 million, up 29.5% from the same period last year. Nearly 30% of the sales of the American company are currently made by womenswear, which has continued to expand more quickly than menswear.

Strong wholesale demand, e-commerce growth through T-Mall in the Greater China region, and four new store openings during the quarter all slowed growth throughout the Thom Browne brand.

According to geographic region, Zegna Group revenues in the Greater China region totaled €116 million for the quarter, up 3% year over year; in the APAC region, revenues increased by 13.7% for the quarter to reach €153 million; and in the EMEA region, revenues increased by 42.8% to €119 million, marking the quarter's highest growth rate. Of that, the Middle East and Africa region contributed €16 million, an increase of 86.4% from the previous year. With revenues for the quarter growing 61.6% year over year to €15 million, the UK also showed continued growth.

For the quarter, the group's directly operated store network, including e-commerce, generated €217 million in revenues, an increase of 20.7%, while wholesale revenues increased by 32.2% to €139 million.

The remarkable performance by both Zegna and Thom Browne in Europe, the Middle East, and the United States, as well as a recovery in the Greater China Region, made this quarter one of our strongest ones thus far. Ermenegildo "Gildo" Zegna, chairman and CEO, of Zegna Group, said, "We reached a number of milestones this quarter as we continue to execute our strategy and promises while keeping loyal to the values that have guided us for 112 years.

"As always, protecting the environment remains the cornerstone of everything we do. We introduced Oasi Cashmere last month, which was a big step toward traceability. At the CNMI (Camera Nazionale Della Moda Italiana) Sustainable Fashion Awards, Oasi Zegna, which is supported by Zegna Group, won this year's Biodiversity Conservation Award.

The organization's full-year revenue guidance of mid-teens growth was reaffirmed.