Despite a challenging backdrop for the luxury sector, Zegna Group ended 2023 on a high, with a strong fourth quarter over the critical holiday season helping give the company a boost.

Revenues hit €1.9 billion ($2.1 billion) for the 12 months through December 2023, up 27.6 percent year-on-year at constant exchange rates. Sales through direct-to-consumer channels across its Zegna and Thom Browne brands, as well as resilient demand in North America, where many luxury peers are experiencing a slowdown in sales, helped drive the growth.

The consolidation of the Tom Ford fashion business into the group in April added an additional €236 million in sales for the full year.

The results come after the group laid out ambitious targets at its capital markets day in December, when it announced plans to grow sales on average 10 percent per year — and profits 20 percent per year — over the medium term.

”The significant increase in our revenues in 2023, and especially from our network of directly operated stores, is a clear indication that demand for our brands remains healthy, and that we are successfully executing our strategy to increase their desirability and solidify their position as leaders in the luxury market,” Ermenegildo “Gildo” Zegna, group chairman and chief executive, said in a statement.

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At an investor day in New York, the Italian luxury group laid out plans for newly acquired Tom Ford, as well as Thom Browne and its namesake Zegna label.