Ermenegildo Zegna: turnover grows, but profit drops

Italian fashion brand Ermenegildo Zegna managed to increase its turnover in the past fiscal year, compared to a turnover drop in the year before that. However, profit did drop almost 40 % at the same time.

Investments

The fashion company’s total turnover grew 4 % to 1.26 billion euro and the company is happy with the turnover development considering the current economic climate. Ermengildo Zegna does have to deal with ever-smaller margins, which meant its profit dropped from 71 to 45 million euro (down 36.6 %), while its EBITDA dropped 21 % to 146 million euro.

However, its lower profit is also because of investments, mainly in its Italian facilities. It built a formal attire manufacturing plant near Novara and it also expanded its omnichannel activities. 

China is still the brand’s biggest market, although both America and Europe are catching up. At the end of 2015, Ermenegildo Zegna had 523 stores worldwide, with 216 managed by external parties.