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In a world where many luxury brands are in somewhat of a slump, Ermenegildo Zegna—a name that doesn’t exactly roll off the tongue—is defying the odds.
The Italian luxury group reported sales of 1.9 billion euros for 2023. That represents a 27.6% jump from 1.5 billion euros in 2022, or an organic growth rate of 19.3%.
The retailer credited sales in Greater China and North America, along with an efficient supply chain, for the impressive sales numbers.
“The significant increase in our revenues in 2023, and especially from our network of directly operated stores, is a clear indication that demand for our brands remains healthy, and that we are successfully executing our strategy to increase their desirability and solidify their position as leaders in the luxury market,” chairman and CEO Gildo Zegna said in a statement.
But other fashion and luxury retailers haven’t been so lucky. Paul Smith recently reported three store closures in Germany, the only European country hit by recession. Meanwhile, Birkenstock reported elevated sales, but had a lower profit outlook for the year, disappointing some investors. And British luxury brand Burberry said in November that it might miss its full year revenue goal for fiscal 2024, citing a slowdown in the UK, China, and the US.