Ermenegildo Zegna Group Revenues Reach EUR1,947 Million1 in FY 2024. Q4 Revenues up 3% Year-On-Year Driven by ZEGNA Brand up 8% YoY.
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FY 2024 revenues grew 2.2% YoY to EUR1,947 million.
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Q4 2024 revenues rose to EUR589 million (+3.3% YoY):
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ZEGNA brand revenues recorded +8.4% YoY growth
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Direct-to-Consumer $(DTC.AU)$ channel drove the Group's performance,
+9.3% YoY for the Group and +10.5% YoY for ZEGNA brand
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Americas (+14.6% YoY) outperformed other geographies driven by
ZEGNA brand
MILAN--(BUSINESS WIRE)--January 27, 2025--
Ermenegildo Zegna N.V. $(ZGN)$ (the "Company" and, together with its consolidated subsidiaries, the "Ermenegildo Zegna Group" or the "Group") today announced unaudited revenues of EUR1,946.6 million for fiscal year 2024, +2.2% YoY from EUR1,904.5 million in fiscal year 2023 (+3.4% at constant currency and -1.9% organic). Revenues in the fourth quarter reached EUR589.2 million, +3.3% YoY (+3.6% at constant currency and +2.9% organic(2) ).
Ermenegildo "Gildo" Zegna, Chairman and CEO of the Ermenegildo Zegna Group, said: "In the fourth quarter of 2024, Group revenues increased 3% boosted by the ZEGNA DTC channel which grew by +11% with double-digit growth in the US and in EMEA, sequentially accelerating compared to the previous quarter. Thom Browne and TOM FORD FASHION also reported positive growth in the highly important DTC channel in Q4.
Beyond the numbers, I feel confident in our strategic projects pipeline. The recent ZEGNA fashion show was acclaimed as one of the strongest ever for the brand with the presentation of our ultra-luxury Vellus Aureum, made by the finest wool, developed thanks to our know-how and unique Filiera. This has reaffirmed ZEGNA's position at the forefront of timeless luxury menswear. At Thom Browne, we have strengthened our global merchandising and retail teams with important additions in the US and Europe and are looking forward to seeing the brand's show in February close the New York Fashion Week. At TOM FORD FASHION, the team is fully focused on delivering strong collections under the new creative leadership of Haider Ackermann.
We expect 2025 to play out differently across various geographies. 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. We are prepared to navigate these challenges with the guidance of our talented team and a sharp focus on our priorities: continuing to build on brand equity, focusing investments on key strategic projects and doubling down on our existing strengths."
(1) Throughout this press release, revenues for the full year 2024 and for the three-month period ended on December 31, 2024 are preliminary and unaudited. (2) Revenues on an organic growth basis (organic or organic growth) and on a constant currency basis (constant currency), are non-IFRS financial measures. Constant currency growth is calculated excluding foreign exchange. Organic growth is calculated excluding (a) foreign exchange, (b) acquisitions & disposals, and (c) changes in license agreements where the Group operates as a licensee. See the non-IFRS financial measures section starting on page [8] of this press release for the definition and reconciliation of non-IFRS financial measures.
Revenues Analysis - FY 2024 and Q4 2024
REVENUES BY SEGMENT (Unaudited)
FY 2024 vs FY Q4 2024 vs Q4
2023 2023
--------- --------- ---------------- -------- -------- ---------------
(EUR thousands,
except
percentages) FY 2024 FY 2023 % Organic Q4 2024 Q4 2023 % Organic
--------- --------- ------- ------- -------- -------- ------ -------
Zegna 1,348,839 1,322,045 2.0% 2.5% 404,426 385,290 5.0% 3.9%
Thom Browne 314,818 380,287 (17.2%) (20.8%) 94,417 98,685 (4.3%) (3.8%)
Tom Ford Fashion 314,514 235,544 33.5% (0.7%) 100,586 96,964 3.7% 3.8%
Eliminations (31,524) (33,327) n.m.(1) n.m. (10,198) (10,579) n.m. n.m
--------- --------- ------- ------- -------- -------- ------ -------
Total revenues 1,946,647 1,904,549 2.2% (1.9%) 589,231 570,360 3.3% 2.9%
--------- --------- ------- ------- -------- -------- ------ -------
(1) Throughout this section "n.m." means not meaningful.
Eliminations include revenues from products that the Textile and Other product lines (included in the Zegna segment) sell to the Group's brands.
REVENUES BY BRAND AND PRODUCT LINE (Unaudited)
FY 2024 vs FY Q4 2024 vs Q4
2023 2023
--------- --------- ---------------- ------- ------- ----------------
(EUR thousands,
except
percentages) FY 2024 FY 2023 % Organic Q4 2024 Q4 2023 % Organic
--------- --------- ------- ------- ------- ------- ------- -------
ZEGNA brand 1,163,722 1,109,491 4.9% 5.5% 353,112 325,843 8.4% 7.3%
Thom Browne 314,712 378,410 (16.8%) (20.5%) 94,645 98,283 (3.7%) (3.1%)
TOM FORD FASHION 314,514 235,531 33.5% (0.7%) 100,590 96,964 3.7% 3.8%
Textile 138,153 150,986 (8.5%) (7.5%) 36,610 42,431 (13.7%) (12.7%)
Other (1) 15,546 30,131 (48.4%) (32.1%) 4,274 6,839 (37.5%) (37.1%)
--------- --------- ------- ------- ------- ------- ------- -------
Total revenues 1,946,647 1,904,549 2.2% (1.9%) 589,231 570,360 3.3% 2.9%
--------- --------- ------- ------- ------- ------- ------- -------
(1) Other mainly includes revenues from agreements with third party brands.
Zegna segment
In FY 2024, revenues for the Zegna segment, which includes the ZEGNA brand, Textile and Other, amounted to EUR1,348.8 million compared to EUR1,322.0 million in FY 2023, +2.0% YoY (+2.5% organic). Revenues in Q4 were EUR404.4 million, +5.0% YoY (+3.9% organic), driven by solid performance from the ZEGNA brand which more than offset the slowdown in the Textile division.
In FY 2024, ZEGNA brand revenues were EUR1,163.7 million compared to EUR1,109.5 million in FY 2023, +4.9% YoY (+5.5% organic(3) ). In Q4 2024, the ZEGNA brand recorded revenues of EUR353.1 million, +8.4% YoY (+7.3% organic). The performance was driven by ongoing robust organic growth in the US and EMEA, which accelerated in comparison to Q3 2024, largely driven by double-digit growth in the DTC channel in the region. Organic performance in the Greater China Region $(GCR.AU)$ improved slightly from Q3 2024 while still remaining below Q4 2023, reflecting the ongoing challenging environment for the luxury sector in the region.
In FY 2024, Textile revenues were EUR138.2 million, compared to EUR151.0 million in FY 2023, -8.5% YoY (-7.5% organic). Q4 2024 revenues came in at EUR36.6 million, -13.7% YoY (-12.7% organic). Other revenues, which mainly include revenues from third-party brands, were EUR15.5 million in FY 2024, compared to EUR30.1 million in FY 2023, -48.4% YoY (-32.1% organic) due to the termination of the Tom Ford International distribution license for Tom Ford products(4) following the acquisition of Tom Ford International LLC on April 28, 2023.
Thom Browne segment
In FY 2024, revenues for the Thom Browne segment amounted to EUR314.8 million, compared to EUR380.3 million in FY 2023, -17.2% YoY (-20.8% organic(5) ). In Q4 2024, revenues were at EUR94.4 million, -4.3% YoY (-3.8% organic). Revenue growth improved sequentially compared to the previous quarter, reflecting the positive performance of the DTC channel and better performance for wholesale, in particular driven by the early spring collections deliveries. In Q4 2024, the brand recorded sound results in Japan, South Korea and the US, which were more than offset by a decline in the GCR and EMEA.
Thom Browne brand results are substantially aligned to the segment, with FY 2024 revenues at EUR314.7 million, compared to EUR378.4 million in FY 2023, -16.8% YoY (-20.5% organic).(6)
Tom Ford Fashion segment
FY 2024 revenues for the Tom Ford Fashion segment amounted to EUR314.5 million, up 33.5% YoY from EUR235.5 million in FY 2023 (-0.7% organic). Organic growth compares the revenue trend at constant currencies since the consolidation of Tom Ford International LLC and its subsidiaries on April 29, 2023, providing a more meaningful comparison on a yearly basis. In Q4 2024, revenues reached EUR100.6 million, +3.7% YoY (+3.8% organic), driven by good DTC performance in particular in the US.
(3) Excludes foreign exchange impact and revenues in South Korea, both DTC and wholesale for each period, since the Group purchased the business in South Korea on January 1, 2024. (4) The licensing agreement for the production and worldwide distribution of luxury men's ready-to-wear and made-to-measure clothing, footwear, and accessories under the TOM FORD brand expired with the deliveries of the Fall/Winter 2022 collection, and a supply agreement to act as the exclusive supplier for certain TOM FORD menswear products commenced starting with the Spring/Summer 2023 collection and ended with the acquisition of TFI. (5) Excludes foreign exchange impact and revenues in South Korea, both DTC and wholesale from January 1 to June 30 each period, since the Group purchased the business in South Korea on July 1, 2023. (6) The difference between Thom Browne segment and Thom Browne brand refers to
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