Ermenegildo Zegna reports negative financials for 2014
The Ermenegildo Zegna Group reports full year 2014 revenues of 1.21 billion euro, down 4.7% from a year earlier. Ebitda fell from 256.800 euros to 185.000 and the net profit declined from 116.300 to 71,000.
The annual results were burdened by the investments to revitalize Agnona, the women’s wear brand of the group. € 20 million were also intended to strengthen the control of the supply chain, with the full implementation of the production center of St. Peter Mosezzo, in Novara, clothing-formal, as well as those of Parma (outerwear, leather and footwear ) and Verrone (knitwear), in Biella.
“The budget in 2014 – said the CEO Gildo Zegna – mainly suffered from the slowdown in consumption of men’s clothing in China and Russia. In this situation we are responding by continuing to invest in direct retail and wholesale, taking advantage of strong partnerships with the largest North American distribution. In addition to the reorganization of production, which started in 2013, we have expanded control over the entire supply chain, with the acquisition of the majority of a farm in New England in Australia, where they breed merino sheep. ”
At the end of 2014, Ermenegildo Zegna Group had 525 mono-brand stores, of which 298 are directly operated. The group is planning to expand in 2015 in the United States and Japan.