MILAN – A new brand strategy and a turnaround in markets including China, the Russian Federation, Macau, Singapore and Japan helped the Ermenegildo Zegna Group post a 64 percent jump in net profits last year. In the 12 months ended Dec. 31, earnings rose to 32.8 million euros, compared with 20 million euros in 2016.
Earnings before interest, taxes, depreciation and amortization climbed 13.6 percent to 142 million euros, compared with 125 million euros, in the previous year.
Revenues increased 2.3 percent to 1.18 billion euros, compared with 1.15 billion euros in 2016. At constant exchange, sales gained 4.5 percent.
“The positive results of 2017 are the outcome of many factors which have interacted nicely thanks to the brand strategy that was inaugurated with the arrival of Alessandro Sartori as artistic director,” said Gildo Zegna, chief executive officer of the family-owned group. “The success of the collections, the development of capsules able to integrate the offer of seasonal collections, and the intensification of marketing initiatives starting with communication campaigns that support storytelling linked to our products and events have allowed Zegna to participate in the recovery that is characterizing the global markets. Thanks to the omnichannel, or the integration between physical and virtual channels, we have not only achieved good results in online sales but, above all, we have better developed our ability to offer increasingly personalized and timely services in our stores, thus enhancing the synergies with our specialized production centers.”
The fall/winter 2018-2019 collection also performed well, said the executive, who noted that, in the first few months of 2018, “positive news is arriving not only from the countries that have allowed us to reverse the trend in 2017, but also from the United States. Instead, the European markets have not yet shown signs of recovery.”