Ermenegildo Zegna Group Reported Q1 2024 Revenues of €463 Million¹, up 8%² YoY, Driven by Zegna Brand and the Integration of Tom Ford Fashion
- Q1 2024 revenues increased by 8.1% YoY to €463.2 million, with a 10.7% growth at constant currency.
- The Zegna segment saw a 1.7% YoY revenue increase, driven by the ZEGNA brand.
- Thom Browne segment revenues declined by 30.2% YoY, impacted by delivery timing and DTC trends in Greater China.
- Tom Ford Fashion segment revenues reached €65.0 million, with upcoming store openings in Rome and Beijing.
- The ZEGNA brand reported a 4.0% YoY revenue growth, with strong performance in key regions.
- DTC revenues grew by 20.4% YoY, driven by the integration of Tom Ford Fashion.
- Americas led revenue growth at 57.7% YoY, while EMEA and Greater China Region saw mixed results.
- The company announced a dividend distribution of €0.12 per share, totaling approximately €30 million.
- Selected events in Q1 2024 included the launch of Oasi Zegna in Milan and Thom Browne's collaboration with Frette for a home furnishings collection.
- Organic growth declined by 5.3% due to Thom Browne underperformance.
- Thom Browne segment revenues dropped significantly by 30.2% YoY, impacting overall performance.
- Wholesale branded revenues declined by 11.5% YoY, with negative performance in Thom Browne and TOM FORD FASHION.
- Greater China Region revenues declined by 15.3% YoY, affecting overall organic growth.
Insights
-
Q1 2024 revenues reached
€463.2 million , +8% Year-on-Year (YoY), and +11% at constant currency.
- By segment, the Zegna segment recorded positive performance, driven by the ZEGNA brand.
- By distribution channel, Direct-to-Consumer (DTC) drove the Group’s revenues.
-
By geographical area, the
Americas led revenues for the quarter, continuing the Group’s strength there.
-
In line with the outlook provided on April 5, 2024, revenues on an organic growth basis3 declined by
5% , driven by Thom Browne underperformance.
Ermenegildo “Gildo” Zegna, Chairman and CEO of the Ermenegildo Zegna Group, 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
A highlight of our efforts to provide unforgettable experiences was the launch in
Looking at the rest of the year, we have a clear and defined path in front of us. I am confident that we are taking the right actions to make our brands even stronger and to deliver on our medium-term ambitions.”
Revenues Analysis for the Three Months Ended March 31, 2024
REVENUES BY SEGMENT (Unaudited)
|
For the three months ended March 31, |
|
Q1 2024 vs Q1 2023 |
||||
(€ thousands, except percentages) |
2024 |
|
2023 |
|
Revenues Growth |
|
Organic Growth |
Zegna |
324,900 |
|
319,324 |
|
|
|
|
Thom Browne |
79,066 |
|
113,251 |
|
( |
|
( |
Tom Ford Fashion |
65,020 |
|
— |
|
n.m.(*) |
|
n.m. |
Eliminations |
(5,829) |
|
(4,263) |
|
n.m. |
|
n.m. |
Total revenues |
463,157 |
|
428,312 |
|
|
|
( |
(*) Throughout this section “n.m.” means not meaningful. |
Zegna segment
In Q1 2024, revenues for the Zegna segment amounted to
Thom Browne segment
In Q1 2024, revenues for the Thom Browne segment amounted to
Tom Ford Fashion segment
In Q1 2024, revenues for the Tom Ford Fashion segment amounted to
REVENUES BY BRAND AND PRODUCT LINE (Unaudited)
|
For the three months ended March 31, |
Q1 2024 vs Q1 2023 |
|||||
(€ thousands, except percentages) |
2024 |
|
2023 |
|
Revenues Growth |
|
Organic Growth |
ZEGNA brand |
282,870 |
|
271,889 |
|
|
|
|
Thom Browne |
79,207 |
|
112,552 |
|
( |
|
( |
TOM FORD FASHION |
65,020 |
|
— |
|
n.m. |
|
n.m. |
Textile |
33,243 |
|
33,818 |
|
( |
|
( |
Other (1) |
2,817 |
|
10,053 |
|
( |
|
( |
Total revenues |
463,157 |
|
428,312 |
|
|
|
( |
________________________________________ | |||||||
(1) Other mainly includes revenues from agreements with third party brands. |
ZEGNA brand
In Q1 2024, revenues for the ZEGNA brand were
Thom Browne
In Q1 2024, revenues for Thom Browne were
TOM FORD FASHION
In Q1 2024, revenues for the TOM FORD FASHION business were
Textile
In Q1 2024, revenues for textile were
Other Revenues
In Q1 2024, other revenues, which mainly includes revenues for third-party brands, were
REVENUES BY DISTRIBUTION CHANNEL (Unaudited)
|
For the three months ended March 31, |
Q1 2024 vs Q1 2023 |
|||||
(€ thousands, except percentages) |
2024 |
|
2023 |
|
Revenues Growth |
|
Organic Growth |
Direct to Consumer (DTC) |
|||||||
ZEGNA brand |
239,615 |
|
229,596 |
|
|
|
|
Thom Browne |
44,719 |
|
42,849 |
|
|
|
( |
TOM FORD FASHION |
43,701 |
|
— |
|
n.m. |
|
n.m. |
Total Direct to Consumer (DTC) |
328,035 |
|
272,445 |
|
|
|
|
As a percentage of branded products (1) |
77 % |
|
71 % |
|
|
|
|
Wholesale branded |
|||||||
ZEGNA brand |
43,255 |
|
42,293 |
|
|
|
|
Thom Browne |
34,488 |
|
69,703 |
|
( |
|
( |
TOM FORD FASHION |
21,319 |
|
— |
|
n.m. |
|
n.m. |
Total Wholesale branded |
99,062 |
|
111,996 |
|
( |
|
( |
As a percentage of branded products |
23 % |
|
29 % |
|
|
|
|
Textile |
33,243 |
|
33,818 |
|
( |
|
( |
Other (2) |
2,817 |
|
10,053 |
|
( |
|
( |
Total revenues |
463,157 |
|
428,312 |
|
|
|
( |
________________________________________ | |||||||
(1) Branded products refer to the products sold under the three brands that the Group operates, through the DTC or wholesale branded distribution channels. |
|||||||
(2) Other mainly includes revenues from agreements with third party brands. |
DTC Revenues Analysis
In Q1 2024, DTC revenues were
Wholesale Branded Revenues Analysis
In Q1 2024, wholesale branded revenues were
REVENUES BY GEOGRAPHICAL AREA (Unaudited)
|
For the three months ended March 31, |
|
Q1 2024 vs Q1 2023 |
||||
(€ thousands, except percentages) |
2024 |
|
2023 |
|
Revenues Growth |
|
Organic Growth |
EMEA (1) |
156,562 |
|
150,108 |
|
|
|
( |
|
114,177 |
|
72,407 |
|
|
|
|
|
139,399 |
|
164,526 |
|
( |
|
( |
Rest of APAC (3) |
52,434 |
|
40,727 |
|
|
|
|
Other (4) |
585 |
|
544 |
|
|
|
( |
Total revenues |
463,157 |
|
428,312 |
|
|
|
( |
________________________________________ | |||||||
(1) EMEA includes |
|||||||
(2) |
|||||||
(3) Rest of APAC includes |
|||||||
(4) Other revenues mainly include royalties. |
In Q1 2024, the Group’s revenues were boosted by a strong double-digit growth in the
Group Monobrand(1) Store Network at March 31, 2024
|
At March 31, 2024 |
|
At December 31, 2023 |
|
At March 31, 2023 |
||||||||||||||||
Stores |
ZEGNA |
|
Thom Browne |
|
TOM FORD FASHION |
|
Group |
|
ZEGNA |
|
Thom Browne |
|
TOM FORD FASHION |
|
Group |
|
ZEGNA |
|
Thom Browne |
|
Group |
EMEA (2) |
73 |
|
9 |
|
5 |
|
87 |
|
71 |
|
9 |
|
4 |
|
84 |
|
67 |
|
10 |
|
77 |
|
63 |
|
7 |
|
12 |
|
82 |
|
59 |
|
7 |
|
12 |
|
78 |
|
54 |
|
7 |
|
61 |
|
81 |
|
33 |
|
11 |
|
125 |
|
79 |
|
33 |
|
10 |
|
122 |
|
78 |
|
29 |
|
107 |
Rest of APAC |
60 |
|
37 |
|
26 |
|
123 |
|
44 |
|
37 |
|
25 |
|
106 |
|
43 |
|
16 |
|
59 |
Total Direct to Consumer (DTC) |
277 |
|
86 |
|
54 |
|
417 |
|
253 |
|
86 |
|
51 |
|
390 |
|
242 |
|
62 |
|
304 |
EMEA (2) |
48 |
|
7 |
|
16 |
|
71 |
|
55 |
|
7 |
|
14 |
|
76 |
|
58 |
|
6 |
|
64 |
|
67 |
|
3 |
|
51 |
|
121 |
|
63 |
|
3 |
|
50 |
|
116 |
|
62 |
|
3 |
|
65 |
|
13 |
|
10 |
|
— |
|
23 |
|
13 |
|
10 |
|
— |
|
23 |
|
12 |
|
10 |
|
22 |
Rest of APAC |
4 |
|
4 |
|
6 |
|
14 |
|
20 |
|
5 |
|
6 |
|
31 |
|
23 |
|
22 |
|
45 |
Total Wholesale |
132 |
|
24 |
|
73 |
|
229 |
|
151 |
|
25 |
|
70 |
|
246 |
|
155 |
|
41 |
|
196 |
Total |
409 |
|
110 |
|
127 |
|
646 |
|
404 |
|
111 |
|
121 |
|
636 |
|
397 |
|
103 |
|
500 |
________________________________________ | |||||||||||||||||||||
(1) Monobrand store count includes our DOSs (which are divided into boutiques and outlets) and our Wholesale monobrand stores (including also monobrand franchisees). |
|||||||||||||||||||||
(2) Does not include any stores in |
UPCOMING EVENTS
Dividend and AGM
On April 5, 2024, the Group announced that it intends to make a dividend distribution to the holders of ordinary shares of
SELECTED EVENTS FROM THE FIRST QUARTER 2024
Oasi Zegna Milan Take Over
On April 16, 2024, ZEGNA officially launched the BORN IN OASI ZEGNA book: a timeless document, playbook, and visual tale that acts as a vessel for the brand’s legacy. The project is much more than a book. During the Salone del Mobile, the city of Milan’s Design Week, ZEGNA carried out a number of projects and initiatives throughout the city, including an immersive exhibition at the Group’s headquarters, opened to the public, which over 26,000 people attended throughout the week. On April 19, 2024, the brand also celebrated the official delivery of the new flowerbeds in Piazza del Duomo, marking the beginning of a new global initiative that will see the creation of other Oasi Zegna locations around the world. The project embodies the ethos of ZEGNA, emphasizing the importance of urban green spaces, biodiversity, and social responsibility.
Thom Browne Partners with Frette
On April 16, 2024, also during the Salone del Mobile, Thom Browne used a unique installation to announce the launch of Thom Browne’s home furnishings collection through a collaboration with Frette, the 160-year-old Italian label. Renowned for approaching comfort with the finest fibers and studied details, with products made by master craftspeople, Frette reflects Thom Browne’s appreciation of heritage textiles and artisanal techniques. The collection is available on thombrowne.com and at Thom Browne stores around the world.
About Ermenegildo Zegna Group
Founded in 1910 in Trivero,
Forward Looking Statements
This communication contains forward-looking statements that are based on beliefs and assumptions and on information currently available to the Company. In particular, statements regarding future financial performance and the Group’s expectations as to the achievement of certain targeted metrics at any future date or for any future period are forward-looking statements. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “target,” “seek”, “aspire,” “goal,” “outlook,” “guidance,” “forecast,” “prospect” or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, although not all forward-looking statements contain these words. Any statements that refer to expectations, projections or other characterizations of future events or circumstances, including strategies or plans, are also forward-looking statements. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements, and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in forward-looking statements as a result of a variety of factors, including: the recognition, integrity and reputation of our brands; our ability to anticipate trends and to identify and respond to new and changing consumer preference; the COVID-19 pandemic or similar public health crises; international business, regulatory, social and political risks; the conflict in
Most of these factors are outside the Company’s control and are difficult to predict. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by the Company and its directors, officers or employees or any other person that the Company will achieve its objectives and plans in any specified time frame, or at all. The forward-looking statements in this communication represent the views of the Company as of the date of this communication. Subsequent events and developments may cause that view to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company disclaims any obligation to update or revise publicly forward-looking statements. You should, therefore, not rely on these forward-looking statements as representing the views of the Company as of any date subsequent to the date of this communication.
Non-IFRS Financial Measures
The Group’s management monitors and evaluates operating and financial performance using several non-IFRS financial measures including: revenues on a constant currency basis (Constant Currency) and revenues on an organic growth basis (Organic Growth). The Group’s management believes that these non-IFRS financial measures provide useful and relevant information regarding the Group’s financial performance and financial condition, and improve the ability of management and investors to assess and compare the financial performance and financial position of the Group with those of other companies. They also provide comparable measures that facilitate management’s ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and other strategic and operational decisions. While similar measures are widely used in the industry in which the Group operates, the financial measures that the Group uses may not be comparable to other similarly named measures used by other companies nor are they intended to be substitutes for measures of financial performance or financial position as prepared in accordance with IFRS.
Revenues on a constant currency basis (Constant Currency)
In addition to presenting our revenues on a current currency basis, we also present certain revenue information on a constant currency basis (Constant Currency), which excludes the effects of foreign currency translation from our subsidiaries with functional currencies different from the Euro.
We calculate Constant Currency revenues by applying the current period average foreign currency exchange rates to translate prior period revenues of foreign subsidiaries expressed in local functional currencies different than the Euro.
We use revenues on a Constant Currency basis to analyze how our underlying revenues have changed between periods independent of the effects of foreign currency translation.
Revenues on a Constant Currency basis are not a substitute for revenues on a current currency basis or any IFRS-related measures, however we believe that revenues excluding the impact of foreign currency translation provide additional useful information to management and to investors in analyzing and evaluating our revenues and operating performance.
Revenues on an organic growth basis (Organic Growth)
In addition to presenting our revenues on a current currency basis, we also present certain revenue information on an organic growth basis (Organic Growth). Organic Growth is calculated as the change in revenues from period to period, excluding the effects of (a) foreign exchange, (b) acquisitions and disposals and (c) changes in license agreements where the Group operates as a licensee.
In calculating Organic Growth, the following adjustments are made to revenues:
(a) Foreign exchange – Current period average foreign currency exchange rates are used to translate prior period revenues of foreign subsidiaries expressed in local functional currencies different than the Euro.
(b) Acquisitions and disposals – Revenues generated by businesses and operations acquired in the current year are excluded. Revenues generated by businesses and operations acquired in the prior year are excluded from the current year for the same period that corresponds to the pre-acquisition period in the prior year. Additionally, where a business or operation was a customer prior to an acquisition, the related pre-acquisition revenues are excluded from the current and prior periods. Revenues generated by businesses and operations disposed of in the current year or prior year are excluded from both periods as applicable.
(c) Changes in license agreements where the Group operates as a licensee – Revenues generated from license agreements where the Group operates as a licensee that are new or terminated in the current year or prior year are excluded from both periods (except if the effects are already included in acquisitions and disposals). Additionally, revenues generated from license agreements where the Group operates as a licensee that experienced a structural change in the scope or perimeter in the current year or prior year are excluded from both periods, including changes to product categories, distribution channels or geographies of the underlying license agreements.
We believe the presentation of Organic Growth is useful to better understand and analyze the underlying change in the Group’s revenues from period to period on a consistent perimeter and constant currency basis.
Revenues on an Organic Growth basis are not a substitute for revenues on a current currency basis or any IFRS-related measures, however we believe that revenues excluding the effects of (a) foreign exchange, (b) acquisitions and disposals and (c) changes in license agreements where the Group operates as a licensee provide additional useful information to management and to investors in analyzing and evaluating our revenues and operating performance.
The tables below show a reconciliation of reported revenue growth to Constant Currency, excluding the effects of foreign exchange, and to Organic Growth, which excludes also acquisitions and disposals and changes in license agreements where the Group operates as a licensee, by segment, by brand and product line, by distribution channel and by geography for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 (Q1 2024 vs Q1 2023).
Segment
|
Q1 2024 vs Q1 2023 |
||||||||||
|
Revenues Growth |
|
less Foreign exchange |
|
Constant Currency |
|
less Acquisitions and disposals |
|
less Changes in license agreements where the Group operates as a licensee |
|
Organic Growth |
Zegna |
|
|
( |
|
|
|
|
|
( |
|
|
Thom Browne |
( |
|
( |
|
( |
|
|
|
—% |
|
( |
Tom Ford Fashion(*) |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
Total |
|
|
( |
|
|
|
|
|
( |
|
( |
________________________________________ | |||||||||||
(*) Throughout this section considered not meaningful (n.m.) as the Group began operating the Tom Ford Fashion segment following the TFI Acquisition, which was completed on April 28, 2023, therefore there is no comparison figure for the period. |
Brand and product line
|
Q1 2024 vs Q1 2023 |
||||||||||
|
Revenues Growth |
|
less Foreign exchange |
|
Constant Currency |
|
less Acquisitions and disposals |
|
less Changes in license agreements where the Group operates as a licensee |
|
Organic Growth |
ZEGNA brand |
|
|
( |
|
|
|
|
|
—% |
|
|
Thom Browne |
( |
|
( |
|
( |
|
|
|
—% |
|
( |
TOM FORD FASHION |
n.m |
|
n.m |
|
n.m |
|
n.m |
|
n.m |
|
n.m |
Textile |
( |
|
( |
|
( |
|
( |
|
—% |
|
( |
Other |
( |
|
( |
|
( |
|
( |
|
( |
|
( |
Total |
|
|
( |
|
|
|
|
|
( |
|
( |
Distribution channel
|
Q1 2024 vs Q1 2023 |
||||||||||
|
Revenues Growth |
|
less Foreign exchange |
|
Constant Currency |
|
less Acquisitions and disposals |
|
less Changes in license agreements where the Group operates as a licensee |
|
Organic Growth |
Direct to Consumer (DTC) |
|
|
|
|
|
|
|
|
|
|
|
ZEGNA brand |
|
|
( |
|
|
|
|
|
—% |
|
|
Thom Browne |
|
|
( |
|
|
|
|
|
—% |
|
( |
TOM FORD FASHION |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
Total Direct to Consumer (DTC) |
|
|
( |
|
|
|
|
|
—% |
|
|
Wholesale branded |
|
|
|
|
|
|
|
|
|
|
|
ZEGNA brand |
|
|
( |
|
|
|
( |
|
—% |
|
|
Thom Browne |
( |
|
—% |
|
( |
|
( |
|
—% |
|
( |
TOM FORD FASHION |
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
|
n.m. |
Total Wholesale branded |
( |
|
( |
|
( |
|
|
|
—% |
|
( |
Textile |
( |
|
( |
|
( |
|
( |
|
—% |
|
( |
Other |
( |
|
( |
|
( |
|
( |
|
( |
|
( |
Total |
|
|
( |
|
|
|
|
|
( |
|
( |
Geographical area
|
Q1 2024 vs Q1 2023 |
||||||||||
|
Revenues Growth |
|
less Foreign exchange |
|
Constant Currency |
|
less Acquisitions and disposals |
|
less Changes in license agreements where the Group operates as a licensee |
|
Organic Growth |
EMEA (1) |
|
|
( |
|
|
|
|
|
( |
|
( |
|
|
|
|
|
|
|
|
|
( |
|
|
|
( |
|
( |
|
( |
|
|
|
( |
|
( |
Rest of APAC (3) |
|
|
( |
|
|
|
|
|
( |
|
|
Other (4) |
|
|
|
|
|
|
|
|
—% |
|
( |
Total |
|
|
( |
|
|
|
|
|
( |
|
( |
________________________________________ | |||||||||||
(1) EMEA includes |
|||||||||||
(2) |
|||||||||||
(3) APAC includes |
|||||||||||
(4) Other revenues mainly include royalties. |
_______________________________ |
1 Throughout this press release, revenues for the first quarter of 2024 are unaudited. |
2 Growth rates refer to year-over-year growth on a current currency basis, unless otherwise indicated. |
3 Revenues on an organic growth basis (Organic Growth) and revenues on a constant currency basis (Constant Currency), are Non-IFRS Financial Measures. 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. |
4 Organic Growth is calculated as the change in revenues from period to period, excluding the TOM FORD FASHION and the Thom Browne and ZEGNA Korean businesses, the foreign exchange rates, and other minor effects. 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. |
5 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. |
6 Based on 250,310,263 Ordinary Shares issued and outstanding at December 31, 2023. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240423704891/en/
Paola Durante, Chief of External Relations
Alice Poggioli, Investor Relations Director
Clementina Tito, Head of Corporate Communication
ir@zegna.com / corporatepress@zegna.com
Source: Zegna Group
FAQ
What were Ermenegildo Zegna Group's Q1 2024 revenues, and how did they compare to the previous year?
Which segment drove revenue growth for the company in Q1 2024?
How did Thom Browne's segment perform in Q1 2024?
What upcoming projects are in store for Tom Ford Fashion in 2024?
Which geographical area led revenue growth for Ermenegildo Zegna Group in Q1 2024?