Zegna Group Expands Production with New Parma Facility, Posts Record 2023 Revenue
Ermenegildo Zegna Group, the Italian luxury fashion house, is expanding its footprint with a new footwear and leather goods production facility in Parma, Italy, slated for completion by the end of 2026. The company's financials for fiscal 2023 show impressive growth, with gross profit soaring to 1.2 billion euros, up from 928 million euros in 2022.
The group's chairman and CEO, Ermenegildo 'Gildo' Zegna, expressed satisfaction with the integration of the TOM FORD FASHION business, which the group acquired in 2022. Preliminary revenue for fiscal 2023 was confirmed at 1.9 billion euros, marking a 27.6% year-over-year increase. Marketing expenses accounted for about 6% of revenue, totalling 115 million euros.
Operating profit for the year surged by 41% to 208 million euros, while group profit nearly doubled to 136 million euros, up from 65.3 million euros in 2022. This growth comes after Zegna became the first Italian luxury brand to list on the New York Stock Exchange in 2021. The Tom Ford brand, acquired by Zegna Group in 2022, contributed 236 million euros to the fiscal 2023 revenue. Selling, general, and administrative expenses stood at 901 million euros, representing 47.3% of revenue.
The new Parma facility underscores Zegna Group's commitment to expanding its production capabilities. With robust financial performance and successful integration of the Tom Ford brand, the group looks set to continue its growth trajectory in the luxury fashion sector.
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