- Prachi Singh |
According to the latest accounts published by Ermenegildo Zegna Group, its turnover for 2018 of 1.159 billion euros (1.300 billion dollars), rose 0.4 percent at constant exchange rates compared to a drop of 2 percent at current exchange rates. The company said, EBITDA at 143 million euros (160.4 million dollars), 12.3 percent on sales, was slightly up versus prior year and net profit of 34 million euros (38 million dollars) was up 4 percent.
“Fiscal year 2018 has been strongly influenced by a general slowdown of the international economy and, in particular, by a weak demand in Europe and US. In this context, our achievement in 2018 has been reached, thanks to the strengthening of the New Brand strategy. Moreover, 2018 was also the year that saw us take control of Thom Browne, a choice I am particularly pleased and proud of. In 2019, thanks also to the consolidation of the New York brand, we will certainly see stronger results,” said Gildo Zegna, CEO of the Ermenegildo Zegna Group in a statement.
Highlights of Zegna’s 2018 performance
Ermenegildo Zegna Group exports account over 90 percent of the total turnover. Together with Greater China, the company said, which continues to grow and to be the most important market, there has been a significant business increase in Russia, Canada, Korea and Japan. These results have been achieved through a good performance of various business areas: in particular, informal clothing, the Couture line supported by the XXX collection and fabrics.
At the end of 2018, the company operated 480 monobrand stores, 267 of which directly managed and 213 franchised/wholesale. In 2019, the company plans to open a new flagship store in New York on 57th St., in Istanbul (Emaar) and in New Jersey (Riverside); in addition to renewals in Palo Alto, San Paolo (Iguatemi), Dubai (Dubai Mall) and Beijing (China World).
“With the launch of our presence on Farfetch, Wechat, Tmall, as well as other important digital sales channels, we continue our efforts in strengthening the omnichannel approach, which implies not only an integration between physical and virtual touchpoints, but also the opportunity to offer increasingly personalized and timely in-store services, leveraging on our specialized production centres,” added Gildo Zegna.