Italian fashion producer Ermenegildo Zegna saw sales and profit enjoy a double digit growth in 2012: sales went up 12% to 1.26 billion euro (+11.9%), while profit grew even a little faster to 130 million euro. For 2013 Zegna is predicting a more moderate growth, due to the weakening of sales on the Chinese market.
Thanks to Asia safe from crisis
Zegna suffered very little from the economic crisis in Italy: the company exports 90% of its production. The strongest growth came in China, Russia, the Middle East and the United States. There are however some downsides: since the last quarter of 2012 sales are slowing down in China.
Remarkable is the interest for the company in Africa: recently it opened a first shop in the Nigerian capital Lagos and next year Mozambique and Angola will follow. CEO Gildo Zegna, grandson of the founder, sees the black continent as an important market for luxury clothing. Rich Africans still often buy their expensive clothes while traveling.
China slows growth (a little bit)
For 2013 Zegna is predicting further growth, although it will probably be more moderate because of lower growth in China and the hesitations in the rest of the world. Accessories and sportswear are still selling well however.
The Italian company has 543 locations worldwide. This year another thirty will be opened, among other in Geneva, London, Cancun and Hanoi.