Italian fashion brand Ermenegildo Zegna announced unaudited revenue of €1,357.4 million (~$1.47 billion) for the first nine months (9 million) of 2024 ended September 30, showing a year-on-year increase (year-on-year) of 1.7% from 1,334.2 million euros. (~$1.44 billion) in the same period in 2023. However, the Group's organic revenue decreased by 4.0 percent.
Ermenegildo Zegna reported a 1.7 percent year-over-year revenue increase in the first nine months of 2024, despite a 4 percent organic decline. Revenue for the Zegna brand grew 3.4 percent, while Thom Browne fell 21.7 percent. Third-quarter revenue fell 7.8 percent year-on-year, driven by challenges in the Greater China region and a 46 percent drop in Thom Browne's wholesale sector.
Nine-month performance by brand and segment
The Zegna brand, which forms the core of the Group's offering, saw a 3.4% year-on-year increase in revenue, reaching €810.6 million (~$875.45 million), up from €783.6 million. million euros (~$846.29 million) in 2023. The organic growth of the Zegna The mark was 4.8 percent, highlighting continued demand in key regions such as EMEA, Americas and Japan. This was driven by strong performance in direct-to-consumer (DTC) channels, where Zegna The brand saw revenue growth of 4.4 percent.
The Thom Browne segment, however, witnessed a sharp decline, with revenue falling 21.7 percent year-on-year to €220.4 million (~$238.03 million) from €281.6 million. euros (~$304.12 million) in 2023. The brand's performance continued to face headwinds. due to a strategic reduction in the wholesale channel and lower consumer confidence in key regions such as the Greater China Region (GCR).
Tom Ford's Fashion segment posted significant growth in the nine-month period, with revenue increasing 54.4% year-over-year to €213.9 million (~$231.03 million), up from €138.0 million. .6 million euros (~$149.69 million) in 2023. Despite this positive performance, the brand's organic revenue fell by 3.8 percent, reflecting variable performance across different sales channels. and geographies.
Quarterly performance
In the third quarter of 2024 (Q4 FY24), Group revenue fell 7.8 percent year-on-year to 397.3 million euros (~$428.08 million), down from 431.1 million euros (~$464 .59 million) in the third quarter of fiscal year 2023 (Q3 FY23). Organic revenue decreased 6.7 percent in the same period.
He Zegna The brand saw a slight increase in Q3FY24, growing 0.9 percent to €244.5 million (~$263.05 million), compared to €242.3 million. euros (~$260.64 million) in Q3FY23. However, this was largely due to DTC channels, with wholesale revenue falling.
Thom Browne, by contrast, faced a substantial 27.4 percent drop in third-quarter revenue to €53.5 million (~$57.78 million), down from €73.2 million ( ~$78.05 million) in Q3FY23, reflecting current challenges, particularly in the wholesale sector. , where the brand recorded a drop of 46.0 percent.
Tom Ford Fashion also saw a 12.2 percent decline in third-quarter revenue, reaching €65.4 million (~$70.63 million), down from €74.6 million (~$80 Tom Ford Fashion's DTC channel grew a modest 2.5 percent, offsetting some of the losses in wholesale, which fell 29.6 percent.
Geographic performance and regional knowledge
Across all regions, EMEA contributed €485.6 million (~$524.45 million) in revenue during the first nine months of 2024, showing modest growth of 2.2 percent year-on-year. However, the organic decline was 1.6 percent. Third-quarter performance in the region showed a 2.1 percent decline in revenue to €149.0 million (~$160.92 million).
In the Americas, the Group saw a strong revenue increase of 15.7 percent in the nine-month period, with total revenue reaching €358.2 million (~$387.24 million). However, third-quarter results in this region recorded a 6.1 percent decline, largely attributed to weaker wholesale sales.
The Greater China Region (GCR) remained a challenge, with revenue falling 15.8 percent to €353.1 million (~$381.35 million) in the first nine months of 2024, which represents 26 percent of the Group's total income. This decline was steeper in the third quarter, with revenue falling 22.8 percent year-on-year to €86.8 million (~$93.74 million), reflecting deteriorating consumer confidence. consumers.
In APAC (excluding GCR), the Group recorded significant growth, with revenue increasing 23.9 percent year-on-year to €158.8 million (~$171.50 million) in the nine-month period. Third quarter growth was 6.1 percent, driven by strong sales in Japan, particularly for Zegna and Thom Browne.
Ermenegildo 'Gildo' Zegna, President and CEO of the Ermenegildo Zegna Groupsaid: “In the first nine months of 2024, our revenue grew 2 percent compared to the same period last year. Although third quarter revenues showed a slowdown for the Group, I am reassured by the continued positive performance of the Zegna brand, driven by the DTC channel and also by the quality of talent we have brought to Thom Browne and Tom Ford Fashion as we work to strengthen those teams.”
Zegna added: “Looking ahead to the fourth quarter of 2024 and 2025, we continue to anticipate an uncertain environment, particularly in the Greater China region. However, I believe that our Group is fully prepared to face the future with stronger brands, a clearer vision and a strengthened management team.”
Fiber2Fashion News Desk (HU)
