Zegna Q4 Sales Fall on China Covid Curbs, Staff Shortages

Italian fashion group Ermenegildo Zegna said on Wednesday that fourth-quarter revenue fell 2.9% at constant exchange rates, which were impacted by the containment of the coronavirus in China.

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

Operations have since returned to normal, he said, returning to a more “predictable activity.”

“We are witnessing a recovery in our business and across the industry and are optimistic about the reopening of China,” Gild Zegna, chairman and CEO, said in a statement.

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

That guidance was aimed at growing up in the “mid-teens.”

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

The company has previously said it expects a “solid improvement” in adjusted earnings before interest and taxes (EBIT).

By Elisa Anzorin.Editor: Jason Neely

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