As for the brand, Zegna led with 1,163.7 million euros in revenue (+4.9 percent year -on -year and +5.5 percent organic), followed by Thom Browne at € 314.7 million (16.8 percent year -on -year), and Tom Ford fashionable € 314.5 million (+33.5 percent yoy).
The Ermenegildo Zegna group has reported income of € 1.95 billion (~ $ 2.11 billion) in fiscal year24, an increase of 2.2 % year -on -year, with a gross margin of 66.6 percent driven by strong DTC sales. Zegna led the brand's performance, while Thom Browne's income decreased. The net profit stood at € 90.9 million (~ $ 98.2 million). The group points to income of € 2.2 2.4 billion (~ $ 2.38– $ 2.59 billion) and € 250– € 300 million EBIT by 2027.
Group's textile revenues decreased by 8.5 percent to € 138.2 million, while other revenues fell 48.4 percent to € 15.5 million.
SG expenses and increased to € 1,008.3 million (51.8 percent of revenues), while marketing expenses reached € 121.4 million. Corporate costs amounted to 20.0 million euros in the fiscal year24 compared to € 30.4 million in fiscal year 23. The decrease is mainly due to the lowest costs for short and long term remuneration.
The group registered an operational gain of € 166.9 million. Net gain decreased to € 90.9 million (~ $ 98.2 million) with a margin of 4.7 percent. This fall was influenced by an effective effective tax rate of 30 percent and increased currency losses of 6.1 million euros due to the appreciation of the US dollar. The adjusted EBIT was € 184.0 million, with an adjusted Ebit margin of 9.5 percent, said Ermenegildo Zegna in a press release.
“In 2024, we take decisive measures, strengthening our organization and prioritizing investments that are strategic in our brands. Our Philiera–Our R&D power–It is still a driving force for our group, feeding the innovation that distinguishes Zegna, Thom Browne and Tom Ford, “he said Ermenegildo 'Gildo' Zegna, President and Executive Director (CEO) of Zegna Group. “Zegna led this action, promoted by the distinctive compromise of the brand and the commitment of the management to deliver results. Tom Ford Fashion has continued his trip towards the realization of his complete potential with a clear understanding of the key priorities. The recent and acclaimed fashion show, the first low Haider Ackermann, is closely aligned with this address and confirms that our way forward is well defined.” “.” “.” “.” “.” “.” “.”
“We maintained a highly disciplined approach, focusing on key projects and investments that improve the desire for the brand while guaranteeing strict cost control. Thom Browne's operational performance reflects our strategic decision to optimize the wholesale channel while reinforcing the client center through DTC,” Zegna added.
Taking into account the current business environment, Ermenegildo Zegna has reviewed its medium -term objectives. By 2027, its objective is to make income between € 2.2 billion (~ $ 2.38 billion) and € 2.4 billion (~ $ 2.59 billion), with an adjusted EBIT that is projected that ranges from € 250 million to € 300 million.
“As we analyze more in 2025, we recognize the importance of maintaining a cautious approach and at the same time we remain committed to delivering our projects. Especially in the current environment, protecting the identity of our brands remains our priority. We will do it with discipline, agility and a strong approach to execute our vision while creating value for our interested parts,” Zegna said, said Zegna.
Fiber2Fashion News Desk (SG)
