Ermenegildo Zegna turnover exceeds 1 billion euros and expands in Africa
Family owned Italian luxury menswear house Ermenegildo Zegna published this week a “historic” annual reportby continuing its strategy of heavily expanding its distribution network and exploring new markets. For the first time in its history, the brand, based in Biella, (Piedmont) saw its turnover exceed one billion euros, an objective which it set for itself in its 2010 centenary year.
The group’s turnover for 2011 stands at 1.127 billion euros, up by 17% compared to 2010 – 90% of which was achieved by exports, and half of that to Asia. It achieved net profit of 115.1 million euros (+91.5%) and earnings before interest, taxes, depreciation and amortization (Ebitda) of 233 million euros (307.9 million USD) (+66%), whilst strengthening its net financial position which increased to 245 million euros. In the light of its results, the group decided to give a bonus of 1,000 euros (1,322 USD) to each of its 7,000 employees.
Zegna’s real motor of growth is its network of retail points of sale, which is invested in heavily since 2005. At the end of 2011, its total number of stores stood at 557 of which 311 are fully-owned. China confirmed its position as the label’s biggest market with an increase in sales of 28%, followed by the USA with sales up 16%.
Europe also showed positive results, thanks to Germany, France and Italy bouncing back owing to tourists’ shopping, as well as Russia and Eastern Europe. Zegna plans to open around fifty stores in 2012, two thirds of which will be in China but also in Europe and America and “new and particular attention” being given to Africa, he said in a press statement, announcing store openings for the first time in Morocco and Nigeria.