Dive Brief:
- Ermenegildo Zegna Group posted Q4 revenue of 589 million euros, or about $618 million, up 3.3% year over year, according to a Monday release. Fiscal 2024 revenue increased 2.2% to 1.95 billion euros.
- Fourth quarter revenue for the company’s namesake Zegna brand rose 8.4% year over year to 353 million euros, driven by strong growth in the U.S. and a strong DTC performance in the combined Europe, the Middle East and Africa region. Full year revenue for the brand rose 4.9% to 1.2 billion euros.
- The Thom Browne brand posted a revenue decrease of 3.7%, to 95 million euros for Q4, largely due to declines in China and EMEA. Full year revenue was down 16.8% to 315 million euros. Meanwhile, Tom Ford Fashion posted a Q4 revenue uptick of 3.7% to 100.6 million euros and a full year increase of 33.5% to 314.5 million euros.
Dive Insight:
Throughout 2024, Zegna Group struggled to overcome many of the recent challenges plaguing the overall luxury industry, including a pullback in consumer spending and a sector slowdown in China.
Ermenegildo Zegna, group chairman and CEO, said the company anticipated continuing regional disparities in 2025.
“We expect 2025 to play out differently across various geographies,” he said in the release. “While we have seen solid performance in the Americas and EMEA in the first weeks of January, we also believe that there will be ongoing volatility with respect to consumer demand in China.”
Revenue in China accounted for 26% of Zegna Group revenue in fiscal 2024, and the company posted a 14.5% revenue decline in the region to 509.4 million euros for the year.
That downturn was offset by a 15.4% increase in FY 2024 revenue for the Americas region, which amounted to 525 million euros for the period, or 27% of group revenue, per the report.
The EMEA region, which accounted for 35% of the company’s 2024 revenue, posted a 3.3% increase to 680 million euros for the year.
The company’s DTC channel represents 78% of its branded products revenues. In FY24, that channel grew 9.9% year over year, while wholesale fell 12.2% for the period.
“Beyond the numbers, I feel confident in our strategic projects pipeline,” Zegna said in the release, adding that the company plans to strengthen its global merchandising and retail teams at Thom Browne “with important additions in the U.S. and Europe.”
The Thom Browne runway show will close New York Fashion Week next month.
