Zegna increases guidance after first half with revenues up 21%

Zegna increases guidance after first half with revenues up 21

(Finance) – Ermenegildo Zegnaan Italian group listed on Wall Street and active in the luxury men’s clothing sector, recorded revenues for 729 million euros in first half of 2022, up 21% year on year. In the second quarter of 2022, sales increased 16% year-on-year to € 351.4 million. The Group’s overall performance was driven by the continued strength of Zegna segmentwhose revenues increased 19% year-on-year to 553 million euros. Thom Browne continues to contribute to overall growth, with revenues growing by 30% yoy for the period, reaching € 185.8 million.

Revenues increased significantly in all major geographies, with the exception of Greater China Regionwhere revenues amounted to € 247.2 million in the first half of 2022, down 14% on an annual basis.

L’Adjusted EBIT for the period was 82.7 million euros, with a Adjusted EBIT margin 11.3% (+20 bps y / y). L’useful of the group for the first half of 2022 was 21 million euros, down 35% on an annual basis. The improvement in the operating result was offset by the 28 million euro increase in the value of the liability for put options on the 10% stake in Thom Browne that the group does not own.

As the Italian group witnessed a continuous positive performance in July and August, as well as a strong success of the SS23 sales campaign, it decided to increase guidance for the whole of 2022. It now expects revenue growth at a mid-teens rate (the previous estimate was low-teens) and a solid improvement (the previous indication was “an improvement”) in Adjusted EBIT, with an Adjusted EBIT margin in the last range. year, considering the increase in marketing and costs.

“While our current performance is solid, including a healthy rebound in the Greater China region, the global geopolitical and economic prospects remain uncertain – commented CEO Ermenegildo “Gildo” Zegna – Through flexibility and discipline, I am confident that we will stay on track as we execute our strategy to achieve our new guidance for 2022 and to achieve the medium-term goals set during our Capital Markets Day last May 17th “.

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