Full Year 2023 Ermenegildo Zegna NV Earnings Call

[music].

Yeah.

Good morning, good afternoon, and welcome to the IMAX PD Lone you're taking the group 'twenty to 'twenty three fiscal year preliminary revenue. So my name is Adam and I'll be real quick tips Tonight.

If you'd like to ask a question during the Q&A portion of today's event will reduce a pressing star one on your telephone keypad.

I'll now hand, the call over to Francesco to your past Tony have to begin to Francesca. Please go ahead when you're ready.

Yes.

Good morning, everyone and thank you for joining us.

That's.

Preliminary and unaudited revenues for the fourth quarter of 2023.

Please note that today's presentation materials.

Please go ahead.

H R.

What fun.

Joining me today are members.

The leadership team EQT in Pennsylvania, Chairman and CEO Luca Savi <unk>.

But he is almost done.

Brown.

Uh huh.

Before we begin I need to point out that we may make some forward.

Forward looking statements during today's call and our actual results may be materially different from those expressed or implied by these forward looking.

All such statements are subject to a number of risks and uncertainties, including those discussed in our OCC.

I refer you to the Safe Harbor statement, which is included in todays.

Today's presentation and of course this call will be governed by that language.

I will now hand over to Keith.

Okay.

Hello to everyone.

Let me start by giving you all welcome and thank you for joining us today.

Just a few weeks ago, we had our second ever capital market day, The New York Stock Exchange and we're on that day, we shared our updated medium term for national ambitions and the ability to look at that was scrapped this year for the group and our brands, which obviously remains the backbone of our execution.

Really a highlight.

We are moving beyond just beginning.

Just beyond being.

Undisputed number one player in luxury menswear to step into the immense opportunity in other sorts of luxury category.

Is it multi brand luxury group.

Our total addressable market is now three times bigger than before.

Our brands perfectly complement each other fostering anr manus blend across geographies categories in general they.

They have significant untapped potential in both.

The community is triggered all of the various markets catching what is customer segments and channels.

As we said during our capital market day, we are very happy with the momentum of our brands and they are very happy to share that we recorded.

Yet another strong quarter with organic growth of about 20% for both the quarter and a year.

And consolidated revenue just short of 2 billion Europe as we continue to execute the group's strategy, we saw growth across all geographies.

The continued strength in the U S. In particular, despite the challenging environment, coupled with a bounce off the greater China region has been quite encouraging.

We are very pleased with the performance of voluntary brands in 2023.

Longer playing today and thanks to all of our management team, we have been sort of just sharpening our execution. There is alonso our brands have with customers around the world supported by our service again and kind of understanding and CRM capabilities.

And market share gains, we are particularly proud of the progress <unk> made it seems their branding.

Our exposure to womenswear essentially through come Brown and now also with Gulfport is also contributing to these gains.

The growth in DTC revenue in particular reflects the success of our strategy to continue to engage the desirability of our brands and solidify our leadership position in the luxury market.

As you have already heard me say many times.

Part of the DVT particular at Dania has been an area of focus we saw the fruits of that in 2023 with a growth of almost 50% compared to 2021 went ahead with the plans. We had presented in May 2022, I will never be tied a repeating that this remains a priority.

Supported by our successful merchandising and by the deployment of new technologies, including Virginia exit to further enhance the sophistication of article in Penny.

None of that is possible without the support and endorsement of our organization and our great Salesforce I had the pleasure of spending time with jewelry and exciting global retail convention, which took place at our headquarters in Atlanta, two weeks ago, which I will share more about shortly.

Also at our capital market day, we shared our updated medium term goals, namely to deliver over 10% compounded annual revenue growth and adjusted EBITDA compounded average growth rate of over 20% and solid cash generation. All compares with 2023 is the base year.

Our performance in 'twenty three strengthen the foundation on which we are building to achieve these goals. This is possible. Thanks to lifestyle management team as well as the tireless effort of our employees across the board.

We are aware of the challenges facing our operating environment that I went to war and on the changes affecting our clients, but we are a stronger more resilient player today set up related a diversity in terms of brands and geographies and generating meaningful market share growth opportunity.

We are starting the new year.

Yesterday.

Look forward of the continued success of Zain, yet from Brown and Tom Ford fashion under the umbrella of our made in Italy vertically integrated supply chain and the stewardship of our <unk>.

It may in fact, human and digital with an eye on cost control and cash protection, but at the same time, we will continue to invest in the business and ability of our brands powered by our marketing as well as strengthening our network of directly operated stores for our sustainable long term growth.

Please turn to page number four four.

Key financial highlights from the fourth quarter and all of 2023 revenue on a full quarter of 2033 came in at 570 million an impressive 41 percentage increase from the fourth quarter were glad to 'twenty two organic growth was at.

19, 6%.

They never anything from 11, three in the previous quarter.

Total revenue for 'twenty, the regulatory 1.9 billion.

<unk> increased from 22 93.

That growth was organic.

In terms of outlook our revenue confirm the group is on track to the medium term financial goals, we shared at our capital market day in December including over 10% compounded annual revenue growth and adjusted EBIT compounded average growth rate of around 20%.

As a reminder, this growth should be driven by sustained by a number of factors first market share gains for the year and store productivity gains of over 10% per year on top of the 50% increase either according to it independently second by Tom Brown doubling in revenue over the medium term.

Compared to 2021, starting days driven by retail growth.

And finally by told fourth fashion growing by almost 10% compounded in the medium term with a mission of making each one over the 10 largest luxury fashion brand in long term.

Yeah.

The low cost will die.

The numbers shortly but allow me to share a screen.

A few highlights.

On slide number five.

The last quarter of last year and the beginning of this year have been busy.

In particular, we received a renewed and our eyewear partnership in Mclean.

Which started in 2015 antibody. We now extended 2030, we also kicked off a long term license agreement with Gabe back beauty for the brand's fragrances and cosmetic.

As you may recall during the capital market day.

In New York.

The head of marketing you identified that licensing is one of the building blocks for the future growth in the Zale brand expected spend by four times in the medium term.

Second as of the beginning of the year CAGR to call our operations of our business in Korea, South Korea.

<unk> 16 stores into direct to consumer a part of assays.

The Internet as soon as Asia, South Korean business in line with our strategy to increase direct control of our brand and mirrors, what we did for Tom Brown last year. We also had our senior global retailer.

Convention in Milan, two weeks ago. These are brought together about 500 people from all over the world to our headquarter, including our store managers and many style advisor. It was the first time, we have had an event like this on a global scale.

And what a joy to seed and his colleagues gathered together for the first time. After many years of persistence. It was exciting to see them fully dive into the totalizing steaming speed is from a visit.

There is no cap peaks in Aussie the almost all of our values to set a workshop focusing product Atlanta pending styling technology and storytelling I was particularly touched to witness the emotional power of our brand of our product of our <unk>.

Industrial codes and amazing Italy platform.

Obviously spend a lot of time setting the priorities and Kpis for the next few years. Our focus is on U T units per transaction, where do we see significant upside at all of our expansion our technology tools, starting from <unk> X and our style credentials.

Operator: Good morning or good afternoon, all. Welcome to the Amagdililo Zecna Group 2023 Fiscal Year Preliminary Revenue School. My name is Adam, and I'll be your operator for today. If you'd like to ask a question during the Q&A portion of today's event, you may do so by pressing star 1 on your telephone keypad. I will now hand the call over to Francesca Pasquantonio to begin. Francesca, please go ahead when you are ready.

Abilities, thanks to our superior product supply chain.

Xander fantastic opportunities for growth in units per transaction. In addition to our on DVD.

Francesca Di Pasquantonio: Yes, good afternoon, good morning everyone, and thank you for joining us as we discuss the training groups' preliminary and annual revenues for the fourth quarter of 2023 and for the Please note that today's presentation materials and press release are available on the message page of the Plenary Group website. Joining us today are members of a very good leadership team, including Gilbert Benyett, Chairman and CEO, Gianluca Tagliabue, CEO and CFO, Rodrigo Bazan, CEO of SunBrown, and Lelio Gavassa, CEO of Sunflow Station. Before we begin, I need to point out that we may make certain forward-looking statements during today's call. Our actual results may be much different from those expressed or implied by these forward-looking statements.

The improvement of course this is all in service of our fashion and our product.

Those are totally show up cases spectacular fashion show at Zynga as Glenn to 84 million men's fashion week show before it is for a large industrial space into a noisy of questionable.

Highlighting this incredible fabric.

And raw materials by creating elements, our customer to move to reflect their own sense of signing the most luxurious materials and speaking a fashion show board, Tom Brown, and thoughtful fashion that would be a horrible they show up like small with Tom Brown showing these native collection of every 14 in New York and Pete.

<unk> showing a more thoughtful fashion collection.

Milan on February 22, and with that let me turn to as I look out to talk about our performance in the last quarter Elliot. Thank you.

Francesca Di Pasquantonio: All such statements are subject to a number of risks and uncertainties, including those discussed in our SEC file. I refer you to the Safe Harbor Statement, which is included on page 2 of today's presentation. And, of course, this goal will be governed by that language. And I will now hand over to Gilles.

Thank you Jim.

And I think it's on page six of the presentation. Following it and I will be discussing revenues for the fourth quarter and the full year in.

More detail as Jim's anticipated.

Full year 2003 total group revenues came in slightly north of $1 9 billion Europe 27, 6% increase.

Gilles: Thank you, Francesca, and hello to everybody. Let me start by giving you a warm welcome and thank you for joining us today. Just a few weeks ago, we had our second-ever capital market day at the New York Stock Exchange, where on that day, we shared our updated medium-term financial ambitions and a very detailed look at our strategy for the group and our brands, which obviously remains a backbone of our execution. As we highlighted then, we are moving beyond just beginning, just beyond being the undisputed number one player in luxury menswear to tap into the immense opportunity in other soft As a multi-brand luxury group, our total addressable market is now three times bigger than before. Our brands perfectly complement each other, fostering an harmonious blend across geographies, categories, and genders.

<unk> 22 on a reported actual currency basis, and an increase of $29 seven on a constant currency basis, and an organic growth of $19 three I recall, what organic growth needs.

Revenue growth versus prior year on year in constant currency and.

Neutralizing the effect of that is coming from an M&A and changes in license agreement.

As licensee, which basically means.

Neutralizing the Dallas upcoming from the bomb for fashion deal on the South Korea acquisition by Tom Brown that occurred mid 2000.

Fourth quarter revenues came in at 570.

70 menu plus 40% year over year with an increase of $42 nine in constant currency and $19 six.

In terms of Dania segment revenues for the fourth quarter came in at 385 plus 15.

Gilles: They have significant untapped potential and opportunities for growth in various markets, categories, customer segments, and channels. As we said during our Capital Market Day, we are very happy with the momentum of our brand, and we are very happy to share that we recorded yet another strong quarter with organic growth of about 20% for both the quarter and the year, and Consolidated Revenue just short of €2 billion. As we continue to execute the Group Strategy, we saw growth across all geographies. And the continuous strength in the U.S., in particular, despite the challenging environment, coupled with the rebound in the Greater China region, has been quite encouraging. We are very pleased with the performance of our three brands in 2023. We are stronger players today, and thanks to our management team, we have been further sharpening our execution.

2% reported growth plus 18 organic increased compared to the same quarter of last year. Some ground segment revenue came in at $999 million, plus 30% reported growth plus 24 in organic terms compared to the fourth quarter of <unk>.

The news on core fashion segment was officially consolidated as of April 29th of last year in the fourth quarter alone the revenues for the <unk> platform came.

Came in at 97 megawatts as I go through the analysis of the 2023 revenues by.

Segment, the product geography, and channel I will mainly focus on organic growth is it more appropriately and we presented the business plan given the significant impact of changes parameter.

Gilles: The resonance of our brands with customers around the world, supported by our sophisticated clienteling and CRM capabilities, is driving market share gains. We are particularly proud of the progress that Xenia has made in telebranding. Our exposure to women through Tom Brown and also with Tom Ford is also contributing to this case.

From the TFS consolidation and the acquisition of Tom Brown quota yet business from July the first which move from wholesale to retail, but you can find all the data in actual and constant currency.

In the published document so.

So moving to page.

Jumping into the segment, both the Dania and Tom Brown continued to show solid double digit revenue growth for the quarter and for the full year.

Gilles: The growth in DTC revenue, in particular, reflects the success of our strategy to continue to increase the desirability of our brand and solidify the leadership position in the luxury market. As you have already heard me say many times, increasing productivity, particularly at Zain, has been an area of focus. We saw the fruit of that in 2023, with a growth of almost 50% compared to 2021, well ahead of the plans we had presented in May 2022. I will never be tired of repeating that this remains a priority, supported by our successful merchandising and by the deployment of new technologies, including Zain Extra, to further enhance the sophistication of our current planning. None of that would be possible without the support and endorsement of the entire organization and our great Salesforce, who I had the pleasure of spending time with during an exciting global retail convention which took place at our headquarters in Milan two weeks ago, which I will share more about shortly.

<unk> segment revenues reached over one 3 billion with a 19 five organic growth versus full year. Two this was thanks to the execution of our direct to consumer strategy for the brand as well as the ongoing improvements to our technological stack, including our CRM systems.

What are the basis for our clients unique unique approach and good to note that we continue to improve productivity for the brand as a reminder, we disclosed the capital market day that sales per square meter has increased by over 50% since 2001, we pride ourselves on remaining close to the customer.

Knowing they need sometimes even before they recognize them and providing them with the right products at the right time, we are using technology. In addition to the experience and incredible retail team to make that more through every day and they reside resolve that we show to date reflect that one thing to note here is that we are fine.

Gilles: Also, at our Capital Market Day, we shared our updated medium-term goals, namely to deliver over 10% compounded annual revenue growth, an adjusted EBIT, a compounded average growth rate of over 20%, and solid cash generation, all compared with 2023 as the base year. Our performance in 2023 strengthened the foundation on which we are building to achieve this goal. This is possible thanks to our strong management team, as well as the tireless effort of our employees across the board. We are aware of the challenges facing our operating environment around the world and of the changes affecting our clients, but we are a stronger, more resilient player today, set up with greater diversity in terms of brands and geographies and generating meaningful market share growth opportunities. We are starting the new year with a position of strength.

Turning our luxury retail business model, we have implemented a new drop based merchandising strategy. We are moving away from a standard seasonal delivery model and replacing it with a more spread out cadence of deliveries at approximately approximately on a monthly basis to make sure that the stores are.

Always properly and maintenance as a result of this decision some spring summer 'twenty four deliveries were intentionally shifted from Q4 <unk> to the first quarter of this year. This effect that some dania wholesale numbers for the last quarter of 2023.

We'll explain later at four phone Brown segment, we saw 23 revenues, reaching 380 million up 14, 9% over the prior year with 17, 8% organic growth on a full year basis, the growth of Tom Brown reflect the consistent demand from consumers.

Gilles: We look forward to the continued success of Xenia, Thom Browne, and Thom Ford Fashion under the umbrella of our made-in-Italy vertical integrated supply chain and the stewardship of our great team. We remain flexible and digital with an eye on cost control and cash protection. But at the same time, we continue to invest in the desirability of our brands, powered by our marketing, as well as strengthening our network of directly operated stores for our sustainable long-term growth. Please turn to page four for some key financial highlights from the fourth quarter and all of 2022. Revenue for the fourth quarter of 2023 came in at $570 million, an impressive 40.1% increase from the fourth quarter of 2022. Organic growth during the period was at 19.6%, accelerating from 11.3 in the previous quarter.

As well as the ongoing BTC expansions.

<unk> is carrying out the internal estimate.

Molly Internalization of Tom Brown, South Korea store network, which kicked in on the pace of decline.

As reflected in the shift of some revenues from.

Wholesale to DTC.

At <unk> Com Port flashing segment the brand revenues since its acquisition on April 29 through the end of the year came in at $236 million. We are in the process of setting up before <unk>.

<unk> organization, taking full advantage of the synergies within the group.

Integration of thoughtful fashion make to measure offering with the group has already contributed to enhance our business for the consumers and we are building on this momentum by focusing on more mix to measure events, especially starting from Asia.

Moving to page nine.

And then actually.

Gilles: Total revenue for 2023 was $1.9 billion, a 27.6% increase from 2022, and 19.3% of that gross was organic. In terms of outlook, our revenue confirmed the group is on track to the medium-term financial goals we shared at our Capital Market Day in December, including over 10% compounded annual revenue growth and an adjusted EBIT compounded average growth rate of around 20%. As a reminder, this growth should be driven by and sustained by a number of factors.

I will now commence the geography.

Commenting together pages 10, and 11 throughout 2023, our performance has confirmed the benefit although diversified geographical mix, which makes us more resilient.

Through the dynamic global environment, let's start from Asia in the fourth quarter revenues for Asia, where two.

141 million plus.

Plus 39% over the fourth quarter of 2022, and 32% organic growth. This led to total revenues for the year and the App region two $788 million.

Gilles: First, market share gains for the year and store productivity gains of over 10% per year, on top of the 50% increase we did record in 2020. Second, by Tom Brown, doubling in revenue over the medium term compared to 2021, starting days driven by retail growth. And finally, by Tom Ford Fashion, growing by over 10% compounded in the medium term with ambitions of making it one of the 10 largest luxury fashion brands in the long term. Gianluca will dive into the numbers shortly, but allow me to share screen a few highlights on slide number five.

For an increase of 22% over the 22 and 23, 7% organic growth in the fourth quarter organic sales growth was faster thanks to the rebound in greater China region, coupled with the tanks, but also in Japan and in the rest of Asia, our rebound in greater China region led to revenues of.

<unk> hundred $76 million in the fourth quarter with an increase of 35% year over year on a reported basis and about 36 organic growth with Dania DTC revenues up almost 40% versus Q4 of last year. Thanks to the thing a one brand strategy execution.

Gilles: The last quarter of last year and the beginning of this year have been busy for Xenia in particular. We recently renewed our eyewear partnership with Macaulay, which started in 2015 and will now extend to 2013. We also kicked off a long-term license agreement with Give Back Beauty for the brand's fragrances and cosmetics. As you may recall, during Capital Market Day in New York, Edoardo, head of marketing, identified licensing as one of the building blocks for future growth in the J.A.A. brand, expected to expand by four times in the medium term. Second, as of the beginning of the year, Zanya took over operations of our business in Korea, South Korea, converting 16 stores into direct-to-consumer points of sales.

And of course helped also by a low base of comparison last year, which was affected by COVID-19 closure and protections looking at Europe Middle East and Africa for all of 2023 revenues from EMEA region were up 26, 6% over $2000.

And about 19% in organic terms, reaching $659 million with 69 million coming from the United Arab Emirates that were up 35% on a yearly basis and about 31% organically.

In the fourth quarter revenues from total <unk> came in at <unk> hundred 84 million growing 39% on a reported actual currency basis compared to the same period of last year and over 14%.

Gilles: The internationalization of the South Korean business is in line with our strategy to increase direct control of our brand and mirrors what we did for Thom Browne last year. We also held our 10-year Global Retail Convention in Milan two weeks ago. This event brought together about 500 people from all over the world at our headquarters, including our store managers and many star advisors. It was the first time we had held an event like this on a global scale.

That experience organic growth was supported by the strong performance of the Zynga branded products in the DTC channel slightly offset by more muted wholesale business, reflecting also the new merchandising strategy mentioned before.

David in Europe remain dynamic throughout the year, reflecting strong activity for both domestic and foreign consumers in the fourth quarter. The Emirates continued to keep their strong momentum and outperformed the region with revenues of $24 million up 22% over the fourth quarter of last year and over.

Gilles: And what a joy to see these colleagues gather together for the first time in many years, of course. It was exciting to see them fully dive into the totalizing scene experience from a visit to Snowcapped Peaks in Aussie, the home of our values, to several workshops focused on product, clientele, styling, technology, and storytelling. I was particularly touched to witness the emotional power of our brand, of our product, and of our industrial roots and Made in Italy Plus. We also spent a lot of time setting the priorities in KPI for the next few years.

2% organic.

Next North American in full year revenues in North America reached over 400 million, namely 417, with a 41, 6% increase over 2022 supported of course also by the Gulfport fashion edition, which is strong in that region and plus 11 four.

Percent organic of this 400.

17 million in North America to 385 come from the United States.

North America fourth quarter revenues came in at <unk> 32, 60% over last year, and plus three 2% organic growth. The U S made up a significant portion of these revenues in the fourth quarter, mainly $125 million with a robust 63% increase over the year.

Gilles: Our focus is on UPT, Units Per Transaction, where we see significant upside and room for expansion. Our technological tools, starting from Xenia X, and our styling credentials and capabilities, thanks to our superior products, supply chain, and service, present a fantastic opportunity for growth in units per transaction in addition to our ongoing productivity improvement. Of course, this is all in service of our fashion and our product, which Alessandro Sartori showcased in a spectacular fashion show at Xenia's 2024 Milan Men's Fashion Week show. He fully transformed a large industrial space into a sea of cashmere, highlighting this incredible fabric and raw material by creating elements our customers can use to reflect their own sense of style in the most luxurious material. And speaking of fashion shows, both Tom Brown and Tom Ford Fashion will be holding their shows next month, with Tom Brown showing his latest collection of every 14 in New York, and Peter Hopkins showing the new Tom Ford Fashion Collection in Milan on February 22. And with that, let me turn to Gianluca to talk about our performance in the last quarter and year. Thank you.

And four 4% organic growth.

The organic performance in North America needs to be Red taking into account various factors the organic growth rate was one <unk> for the <unk> brand in the DTC channel.

This remarkable performance of being a retail was partially offset by lower wholesale in Q4 2023 as a result of the impact of the shift in wholesale deliveries cables, which I have previously described.

And the conversion of wholesale into retail of the meaningful Saks Fifth Avenue store in New York.

We continue to be encouraged by the growth in the U S. Despite the volatile consumer environment, there and we believe that our unique luxury offering resonates with the consumer base is seen in the strength. We estimated last year incidentally, we saw spending on dania almost doubling around.

And U S consumers around the world compared to pre pandemic levels.

Finally ramping in some Latin America grew 29, six in the quarter and almost 21 inorganic terms over the same period to reach 13 million. This brought a lock on the revenues.

Gianluca: Thank you, Gildo, and I'll take it from page six of the presentation, if you're following it, and I will be discussing revenues for the fourth quarter and the full year in more detail. As Gildo anticipated, in the full year, 23 total group revenues came in likely north of 1.9 billion euros, a 27.6% increase from 2022 on a reported actual currency basis, and an increase of 29.7% on a constant currency basis, and an organic growth of 19.3%. I recall what organic growth means.

238 million meeting the full year with an increase of 25% over the year and 16% organic.

Quickly going through page 11.

All the comments EVAR ABB.

Wait.

So far I, just a remark and kiosks, the well balanced maintenance at this point between the different regions. For instance, you see are representing 31% of group revenues in 2023.

Gianluca: It is the revenue growth versus the prior year in constant currency and neutralizing the effect of that same scope coming from an M&A and changes in license agreements with legitimate licensees, which basically means it means neutralizing the delta coming from the Tom Ford fashion deal and the South Korea acquisition by Tom Brown that occurred mid-2013. Four quarter revenues came in at $570 million, plus 40% year over year, with an increase of $42.9 in constant currency and $19.6 in organic terms. Genius segment revenues for the fourth quarter came in at 385 million plus 15.2% reported growth plus 18.2% organic increase compared to the same quarter of last year. SunBrown segment revenues came in at 99 million plus 30% reported growth plus 24 in organic terms compared to the fourth quarter of 2022. The new Tom Ford Fashion segment was officially consolidated as of April 29th last year.

Also in Q4, and the fact that we have seen double digit organic growth across all regions both toward the full year and for the last quarter with the exception of North America for the reason already described remark in the fact that they are retail and U S. In Q4.

As Trey in the ICU.

<unk> of growth.

Now going to <unk>.

H.

2014.

Product line.

They are branded products contributed 58% of group revenues.

With a total of $1 1 billion for the full year. This was a plus one 2% increase in actual currency and a remarkable 22% organic growth for the year revenue for branded products for the fourth quarter came in at 126 million.

And 80 818, 8% increase over the quarter.

Organic terms about 21%, therefore, <unk> steady performance across the quarters, along the year revenue were boosted by both luxury diesel wear and footwear, which as you know our two strategic progress areas for the brands luxury leisure wear continues to gradually increasing.

Gianluca: In the fourth quarter alone, revenues for Tom Ford Fashion came in at 97 million. As I go through the analysis of the 2023 revenues by segment, product, geography, and channel, I will mainly focus on organic growth as it more appropriately represents the business plan given the significant impact of the changes in perimeter from the TFF consolidation and the acquisition of Tom Brown Korea's business from July 1st, which moved from wholesale to retail. But you can find all the data in actual and constant currency in the published documents. So moving to the next page.

Solution to the mix.

And now makes up about 50% of the revenues for the Zynga brand as we continue to focus on meeting our customers desire for this product.

The highest level of quality shoes also continues to outperform growing.

Double digits last year, and now making up 13% of the dania problem with mix versus percent last year I would just like to recall that at our capital market day, we emphasized the significant opportunity that we still see in this category.

Gianluca: 8, Jumping into the segment, both Zegna and Tom Brown continue to show solid double-digit revenue growth for the quarter and for the full year. In 23, Zegna's segment revenues reached over $1.3 billion with a 19.5% organic growth versus a full year of 22. This was thanks to the execution of our direct-to-consumer strategy for the brand, as well as the ongoing improvements to our technological stack, including our CRM systems that are the basis for our clientelic unique approach. As Gildo noted, we continue to improve productivity for the brand. As a reminder, we disclosed in the capital market data that sales per square meter increased by over 50% since 2021. We pride ourselves on remaining close to customers, knowing their needs, sometimes even before they recognize them, and providing them with the right products at the right time.

You can understand from this date that the growth of Dania brand is not only linked to the triple stage success, but in absolute terms. It is mostly driven by the increase in sales from apparel, namely leisure luxury equal.

And in this regard I call out within apparel also our made to measure offering which has been very dynamic both in pharma as well as the casual categories such as for instance network makes the measure we are investing to elevate customization through technologies, such as <unk> positioning us even better.

Keith or at our customers and their wardrobe needs. Some brown product line made up 20% of revenues in the 23 is an incidence to the group revenues contributing $378 million, plus 14, 7% and 17% inorganic terms.

Gianluca: We are using technology, in addition to the experience and incredible retail teams, to make that more true every day, and the results that we show today reflect that. One thing to note here is that we are strengthening our luxury retail business model. We have implemented a new drop-based merchandising strategy. We are moving away from a standard seasonal delivery model and replacing it with a more spread-out cadence of delivery approximately on a monthly basis to make sure that the stores are always properly handmade. As a result of this decision, some spring-summer 24 deliveries were intentionally shifted from Q4-23 to the first quarter of this year.

While the brand as a whole continues to grow women's wear and Tom Brown in particular continues to outperform making up 30% of the brand revenues in line with our strategy to increase our offering there Tom Ford question was readiness, our ending member consolidator as of April <unk>.

Abuse of 29 36 with the same growth that I mentioned before.

When presenting the segment.

Our textile products contributed 8% of revenues 151, millennium, a 10% increase over 2022 and nine 5% in organic terms in the fourth quarter. The textile revenues came in at 42.

10%.

Gianluca: This affected some Xenia wholesale numbers for the last quarter of 2023, as I will explain later. In the Fort Tom Brown segment, we saw revenues reaching $380 million, up 14.9% over the prior year, with 17.8% organic growth on a full year basis. The growth of Thom Browne reflects the consistent demand from consumers, as well as the ongoing BPC expansions that the team is carrying out. The internationalization of its South Korean store network, which kicked in on the 1st of July 1993, is reflected in the shift of some revenues from wholesale to BPC. As for the Comfort Fashion segment, the brand revenues from its acquisition on April the 29th through the end of the year came in at $236 million. We are in the process of setting up the full Comfort Fashion organization, taking full advantage of the synergies within the group. The integration of Tom Ford Fashion's make-to-measure offering with the group has already contributed to enhanced services for the consumers, and we are building on this momentum by focusing on more make-to-measure events, especially starting from April, moving to page 9, and Chen in particular. I will now comment on the geography, commenting together on pages 10 and 11.

Versus last year and 12% in organic terms expand business has continued to perform strongly in particular, thanks to some deliveries from our lending feature and manageable debt. Finally third party brands were down 74% due to the end of the Tom Ford supply agreement and the integration of <unk>.

Fourth fashion into Liberal.

As we have previously noted sales to the comfort fashion have been shifted to that segment and are reflected in the inter company eliminations.

Finally, we.

Let's take a look at the top of readiness by channel.

<unk> 15, starting from the DTC channel, our DTC channel saw dynamic organic growth regions across Zhang and Tom Brown DTC revenues came in at 1 billion 265 for the year with a robust 37% increase.

Over 2022 natural currency 24, 5%.

Organic growth DTC makeup at this 166% of revenues.

<unk> 23 up four percentage points from the 62% of last year that was again, the leading contributor by ramping into our DTC channel with $945 million in DTC.

Gianluca: Throughout 2023, our performance has confirmed the benefit of a diversified geographical mix, which makes us more resilient in the dynamic global environment. Let's start with Asia. In the fourth quarter, revenues for Asia were 241 million, plus 39% over the fourth quarter of 2022 and 32% organic growth. This led to total revenues for the year in the APAC region reaching $788 million, for an increase of 22% over 2022 and 23.7% organic growth. In the fourth quarter, organic sales growth was faster, thanks to the rebound in Greater China Region, coupled with strength also in Japan and in the rest of Asia. Our rebound in Greater China Region led to revenues of $176 million in the fourth quarter, with an increase of 35% year-over-year on a reported basis and about 36% organic growth, with Xenia BTC revenues up almost 40% versus Q4 of last year, thanks to the Xenia One brand And, of course, helped also by a low base of comparison last year, which was affected by COVID-19 closure and restrictions.

Gianluca: Looking at Europe, Middle East, and Africa, for all of 2023, revenues from the EMEA region were up 26.6% over 2022 and about 19% in organic terms, reaching $659 million, with $69 million coming from the United Arab Emirates, which were up 35% on a yearly basis and about 31% organically. In the fourth quarter, revenues from Total Aminia came in at $184 million, growing 30.9% on a reported actual currency basis compared to the same period of last year and over 14% in organic terms. Organic growth was supported by the strong performance of the Zinia branded products in the TTC channel, slightly offset by a more muted wholesale business, also reflecting the new merchandising strategy mentioned before. Activity in Europe remained dynamic throughout the years, reflecting strong activity for both domestic and foreign consumers.

Gianluca: In the fourth quarter, the emirates continue to keep their strong momentum and outperform the region with revenues of $24 million, up 22% over the fourth quarter of last year and over 20% Next, North America. For the full year, North American revenues reached over 400 million, namely 417 million, with a 41.6% increase over 2022, supported, of course, also by the Tom Ford Fashion Edition, which is strong in that region, and plus 11. Of these 417 million, 385 come from North America.

Gianluca: North America fourth-quarter revenues came in at 132, 60 percent over last year and plus 3.2 percent organic growth. The U.S. made up a significant portion of these revenues in the fourth quarter, namely 125 million with a robust 63 percent increase over the year and 4.4 percent organic growth. The organic performance in North America needs to be read, taking into account various factors.

Gianluca: The organic growth rate was in the high teens for being a brand in the DTC channel. This remarkable performance of Zegna Retail was partially offset by lower wholesale in Q4, 2023, as a result of the impact of the shift in wholesale delivery schedules, which I have previously described, and the conversion of wholesale into retail of the meaningful Saks Fifth Annual Store in New York. We continue to be encouraged by the growth in the US despite the volatile consumer environment there, and we believe that our unique luxury offering resonates with our consumer base, as seen in the strength we exhibited last year. Incidentally, we saw spending on Xenia almost doubling among US consumers around the world compared to pre-pandemic levels.

Gianluca: Finally, revenues from Latin America grew 29.6 in the quarter and almost 21 in organic terms over the same period to reach 13 million. This brought LATAM revenues to 38 million in the full year, with an increase of 25 over the year and 60 percent organic. Quickly going through page 11 here, all the comments have already been raised so far.

Gianluca: I just remarked on a few aspects. The well-balanced incidents at this point between different regions, for instance, GCR representing 31% of group revenues in 2023 and also in Q4. And the fact that we have seen double-digit organic growth across all regions, both for the whole year and for the last quarter, with the exception of North America for the reasons already described, highlighting the fact that Zenia Retail in the US, in Q4, has trailed in the IT range of growth. Now going to Page 1 project line.

Gianluca: Zinnia branded products contributed 58% of group revenues, with a total of $1.1 billion for the whole year. This was a plus 20% increase in actual currency and a remarkable 22% organic growth for the year. Revenue for Xenia branded products for the fourth quarter came in at $336 million, an 18.8% increase over the quarter, in organic terms, about 21%. Therefore, a pretty steady performance across the quarters along the year.

Gianluca: Revenue was boosted by both luxury leisure wear and footwear, which, as you know, are two strategic product areas for the brand. Luxury leisure wear continues to gradually increase its contribution to the mix and now makes up about 50 percent of the revenues for the Zegna brand as we continue to focus on meeting our customers' desire for this product at the very highest level of quality. Shoes also continue to outperform, growing by double digits last year and now making up 13 percent of the Zegna product mix versus 8 percent last year. I would just like to recall that at our Capital Market Day, we emphasize the significant opportunity that we still see in this category. As you can see from this data, the growth of the Zegna brand is not only linked to the triple-stitch success, but in abstract terms, it is mostly driven by the increase in sales from apparel, namely leisure and luxury. And in this regard, I call out, within Apparel, also our make-to-measure offering, which has been very dynamic, both in formal as well as in casual categories, such as, for instance, knitwear. In make-to-measure, we are investing in enhancing customization through technologies such as XeniaX, positioning us even better to cater to our customers and their wardrobe needs.

Gianluca: Tom Brown's product line made up 20% of revenues in 2023 as an incidence to the group revenues, contributing $378 million plus 14.7% and 17.5% in organic terms. While the brand as a whole continues to grow, women's wear, in particular, continues to outperform, making up 30% of the brand revenues in line with our strategy to increase our offering there. Tom Ford Fashion, whose revenues are, remember, consolidated as of April, contributed $136 with the same growth that I mentioned before when presenting the same product. Our textile products contributed 8% of revenues, 151 million, a 10% increase over 2022, and 9.5% in organic. In the fourth quarter, textile revenues came in at 42, up 13% versus Lafayette, Dr. Santino.

Gianluca: The textile business has continued to perform strongly, in particular thanks to strong deliveries from our Lanificio Air Managers. Finally, third-party brands were down 74% due to the end of the Tom Ford supply agreement and the integration of Tom Ford Fashion into the group. As we have previously noted, sales to the Tom Ford Fashion segment have been shifted to that segment and are reflected in the intercompany annuity. Finally, we'll take a look at the cut of Remy's bite channel, page 15, starting from the DTC channel.

Gianluca: Our DTC channel saw dynamic organic growth increases across Zane and Tom Brown. DTC revenues came in at $1,265,000 for the year, with a robust 37% increase over 2022 in actual currency, and 24.5% organic growth. DTC makes up, at this point, 66% of revenues in 2023, up 4 percentage points from the 62% of last year. Zegna was again the leading contributor by revenue to our VTC channel with 945 million in