Growth for Zegna Group in first quarter of 2024
The Zegna segment had revenue growth of 1.7% in the period (4.3% on an organic basis) to €324.9 million, while Thom Browne was down 30.2% (35% organic) to €79.01 million. Tom Ford Fashion does not have a year-on-year comparison for the quarter but had revenues of €65.02 million in the quarter.
Direct-to-consumer revenues made up 77% of branded product sales for the quarter and were up 20.4% (3.2% organic) to €328.04 million. Wholesale branded, meanwhile, was down 11.5% (25.9% organic) to €99.06 million.
By region, EMEA saw an increase of 4.3% (down 6.5% organic) to €156.56 million in the quarter, while the Americas were up 57.7% (10.3% organic) to €114.18 million. Greater China was down 15.3% (13.1% organic) to €139.4 million and the rest of APAC grew by 28.7% (4.9% organic) to €52.43 million. Other regions were up 7.5% (down 12.7% organic) to €585,000.
Organic growth for these results is calculated as the change in revenues from period to period, excluding the effects of foreign exchange, acquisitions, disposals and changes in license agreements where the group operates as a licensee.
CEO and Chairman Ermenegildo “Gildo” Zegna said: “Closing the first quarter of 2024 with double-digit revenue growth on a constant currency basis is reassuring given the challenges that the sector is facing. Our growth in the Americas – also in double digits – and the ongoing successful delivery on our Zegna One Brand strategy give me additional assurance that we are moving in the right direction.
“I am confident in the decisions we are making to accelerate our direct control of the business, in particular at Thom Browne and Tom Ford Fashion, and we have also reinforced our talent and leadership across all levels, knowing how critical our people are to delivering results. Finally, we are continuing our focus on clienteling and customer experience, both of which will further strengthen the long-term value of all our brands.”
Credit: Zegna