Zegna Q4 Sales Fall on China Covid Curbs, Staff Shortages

Italian fashion group Ermenegildo Zegna on Wednesday posted a 2.9 percent fall in fourth-quarter revenue at constant exchange rates hurt by Covid curbs in China.

The company, which is listed in New York, added that after restrictions were eased in early December, it also experienced temporary store closures due to staff shortages.

It said operations have since normalised, returning to more “predictable activities”.

“I am optimistic about China’s reopening as we are witnessing a rebound in our business and the industry at large,” chairman and chief executive Gildo Zegna said in a statement.

The group said its 2022 revenue rose 11 percent at constant exchange rates to €1.49 billion ($1.62 billion), according to preliminary data.

Its guidance was for “mid-teens” growth.

The group said it expects a “moderate improvement” in adjusted operating profit for 2022 despite the headwinds in China.

It had previously said it expected a “solid improvement” in adjusted earnings before interests and taxes (EBIT).

By Elisa Anzolin; Editor: Jason Neely

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