Zegna Sees Sales, Profit Growth in 2011 as Luxury Demand Returns

Ermenegildo Zegna, the century-old Italian maker of men’s suits, expects revenue and profit to rise next year as it opens at least 20 new stores, half of which will be in China, the company’s chief executive officer said.

Sales will grow “well above 10 percent” this year, led by Zegna’s biggest market of China and exceed the 870.6 million euros ($1.22 billion) generated in 2008, CEO Ermenegildo Zegna also said today in a telephone interview. While the Trivero, Italy-based company’s margins are improving, 2010 profit will be below the 62.3 million euros earned in 2008, Zegna said.