ITALY: China helps Ermenegildo Zegna double FY profit
- FY net profit jumped to EUR115m (US$145.5m) from EUR60m
- Sales surged 17% to EUR1.127bn
- Ebitda jumped 66% to EUR233m
Strong growth in China propelled Italian luxury men's wear firm Ermenegildo Zegna Group to a near doubling of its profits last year.
The firm this week said net profit in 2011 jumped to EUR115m (US$145.5m) from EUR60m a year ago. Sales surged 17% to EUR1.127bn, while Ebitda jumped 66% to EUR233m.
Sales in its main market China soared 28%, but gains of 16% were also seen in the US. The company said Europe saw positive results "on the whole", with rises in Germany, France and Italy.
With exports accounting for over 90% of sales, the company is planning to open around 50 new stores in 2012, of which a third will be in China. There is also a new focus on Africa, where stores will be opened for the first time in Morocco and Nigeria.
There are currently 557 mono-brand stores in operation, of which 311 are fully owned.
"We are confident we will continue to grow this year too," said CEO Ermenegildo Zegna. "Retail figures for the first quarter of 2012 show an average growth of 11% at constant rates, enabling us to consolidate our role in the global men's luxury retail market."
Companies: Ermenegildo Zegna Group
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