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Italian fashion label Zegna’s UAE revenue up 50%

Zegna's profits were down in the UK, unlike its UAE counterpart Creative Commons/Picasa
Zegna's profits were down in the UK, unlike its UAE counterpart
  • Zegna’s UAE sales hit €31.9m in H1 2023
  • UK revenues were just €28.8m
  • UAE non-oil expansion at 4-year high

Italian fashion retailer Ermenegildo Zegna Group’s sales in the UAE soared by 50 percent in the first half of this year, more than double its global average.

Sales of €31.9 million in the UAE surpassed those in the UK, which totalled €28.8 million.

This is despite the UK’s population being nearly seven times as big as the 10 million people of the Emirates.

In 2022 the group earned €21.7 million in the Gulf state, but €23.5 million in the UK.

The designer brand’s revenues in the UAE grew 49.4 percent in the first six months of 2023, with direct-to-consumer sales a major driver.

Europe, the Middle East and Africa (Emea) revenues overall hit €323 million, up 23.8 percent on H1 2022.

Zegna’s UAE sales are a marker of the Emirates’ economic growth. By comparison, the UK is growing at less than one percent, weighed down by ongoing high inflation, which was 7.9 percent in June.

Sales workers

July’s S&P Global UAE Purchasing Managers’ Index, a composite indicator designed to give an accurate overview of conditions in the non-oil private sector economy, rose to 56.9 in June from 55.5 in May. 

“The index signalled a substantial strengthening of business conditions and one that was the most pronounced since June 2019,” S&P said.

The IMF shared a similar sentiment in its May 2023 Regional Economic Outlook.

It noted that “positive momentum in the retail and service sectors” in countries including the UAE is helping the Gulf region expand its non-oil economy.

“New business was up rapidly over the month, with the rate of expansion hitting a four-year high. Total new orders were supported by an increase in new business from abroad,” S&P added.

“This expansion is creating jobs in the UAE, with firms recruiting additional sales workers.”

Rising Emea sales

Zegna said Emea performed “exceptionally well”.

The group posted total revenues of €903 million ($990 million) for the first six months of 2023, up 23 percent year on year.

“Our brands continue to resonate strongly with customers worldwide, with a positive rebound in China in the first half of the year, our persistent strength in Emea, and our outstanding performance in the US market,” Ermenegildo Zegna, chairman and CEO, said.

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