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Ermenegildo Zegna Group Revenues Reach €960 Million¹ in H1 2024, Up 6% Year-on-Year

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Ermenegildo Zegna Group reported €960.1 million in revenues for H1 2024, up 6.3% year-over-year. Key highlights:

- ZEGNA brand revenues grew 4.6% YoY to €566.1 million
- Thom Browne revenues declined 19.4% YoY to €166.7 million
- TOM FORD FASHION revenues reached €148.5 million
- Direct-to-Consumer channel drove growth, up 14.8% YoY
- Strong performance in U.S. and EMEA markets
- Greater China Region faced challenges with single-digit negative organic growth

The company remains confident in its long-term strategy despite a challenging 2024 outlook. Cost control initiatives are being implemented across the group while continuing to invest in growth opportunities for its three core brands.

Il Gruppo Ermenegildo Zegna ha riportato €960,1 milioni di fatturato per il primo semestre del 2024, con un aumento del 6,3% rispetto all'anno precedente. Punti salienti:

- I ricavi del marchio ZEGNA sono aumentati del 4,6% rispetto all'anno precedente, arrivando a €566,1 milioni
- I ricavi di Thom Browne sono diminuiti del 19,4% YoY arrivando a €166,7 milioni
- I ricavi di TOM FORD FASHION hanno raggiunto €148,5 milioni
- Il canale Direct-to-Consumer ha guidato la crescita, con un incremento del 14,8% YoY
- Ottime performance nei mercati statunitensi e EMEA
- La Regione della Grande Cina ha affrontato sfide con una crescita organica negativa a una cifra

L'azienda rimane fiduciosa nella sua strategia a lungo termine nonostante un outlook sfidante per il 2024. Sono state implementate iniziative di controllo dei costi in tutto il gruppo, continuando a investire in opportunità di crescita per i suoi tre marchi principali.

El Grupo Ermenegildo Zegna reportó €960,1 millones en ingresos para el primer semestre de 2024, un aumento del 6,3% interanual. Aspectos destacados:

- Los ingresos de la marca ZEGNA crecieron un 4,6% interanual hasta alcanzar €566,1 millones
- Los ingresos de Thom Browne disminuyeron un 19,4% interanual hasta €166,7 millones
- Los ingresos de TOM FORD FASHION alcanzaron €148,5 millones
- El canal Direct-to-Consumer impulsó el crecimiento, con un aumento del 14,8% interanual
- Buen rendimiento en los mercados de EE.UU. y EMEA
- La Región de China Continental enfrentó desafíos con un crecimiento orgánico negativo de un solo dígito

La compañía sigue confiando en su estrategia a largo plazo a pesar de un panorama desafiador para 2024. Se están implementando iniciativas de control de costos en todo el grupo mientras se continúa invirtiendo en oportunidades de crecimiento para sus tres marcas principales.

에르메네질도 제냐 그룹은 2024년 상반기 매출 €960.1백만을 보고했으며, 전년 대비 6.3% 증가했습니다. 주요 하이라이트:

- ZEGNA 브랜드의 매출은 전년 대비 4.6% 증가하여 €566.1백만에 달했습니다.
- 톰 브라운 브랜드의 매출은 전년 대비 19.4% 감소하여 €166.7백만에 도달했습니다.
- TOM FORD FASHION 매출은 €148.5백만에 이르렀습니다.
- Direct-to-Consumer 채널은 14.8%의 성장률을 기록했습니다.
- 미국 및 EMEA 시장에서 강력한 성과를 보였습니다.
- 중국 대륙 지역은 한 자리 수의 부정적인 유기적 성장률로 어려움을 겪었습니다.

회사는 도전적인 2024년 전망에도 불구하고 장기 전략에 대한 확신을 가지고 있습니다. 그룹 전반에 걸쳐 비용 관리 이니셔티브가 시행되고 있으며, 세 가지 핵심 브랜드의 성장 기회에 계속 투자하고 있습니다.

Le Groupe Ermenegildo Zegna a annoncé un chiffre d'affaires de €960,1 millions pour le premier semestre 2024, en hausse de 6,3 % par rapport à l'année dernière. Points forts :

- Les revenus de la marque ZEGNA ont augmenté de 4,6 % en glissement annuel pour atteindre €566,1 millions
- Les revenus de Thom Browne ont diminué de 19,4 % en glissement annuel à €166,7 millions
- Les revenus de TOM FORD FASHION ont atteint €148,5 millions
- Le canal Direct-to-Consumer a contribué à la croissance, avec une augmentation de 14,8 % en glissement annuel
- Excellentes performances sur les marchés américains et EMEA
- La région de la Grande Chine a fait face à des défis avec une croissance organique négative à un chiffre

Malgré des perspectives difficiles pour 2024, l'entreprise reste confiante dans sa stratégie à long terme. Des initiatives de contrôle des coûts sont mises en œuvre dans l'ensemble du groupe, tout en continuant à investir dans des opportunités de croissance pour ses trois marques principales.

Die Ermenegildo Zegna Group berichtete von €960,1 Millionen Umsatz im ersten Halbjahr 2024, was einem Anstieg von 6,3 % im Vergleich zum Vorjahr entspricht. Wichtige Highlights:

- Die Umsätze der Marke ZEGNA stiegen im Jahresvergleich um 4,6 % auf €566,1 Millionen
- Die Umsätze von Thom Browne sanken im Jahresvergleich um 19,4 % auf €166,7 Millionen
- Die Umsätze von TOM FORD FASHION erreichten €148,5 Millionen
- Der Direct-to-Consumer-Kanal trieb das Wachstum voran und stieg im Jahresvergleich um 14,8 %
- Starke Leistungen auf den Märkten in den USA und EMEA
- Die Region Greater China hatte mit einem negativen organischen Wachstum im einstelligen Bereich zu kämpfen

Das Unternehmen bleibt trotz eines herausfordernden Ausblicks auf 2024 zuversichtlich in seiner langfristigen Strategie. Kostensenkungsinitiativen werden im gesamten Konzern umgesetzt, während weiter in Wachstumsmöglichkeiten für seine drei Kernmarken investiert wird.

Positive
  • Overall revenue growth of 6.3% YoY to €960.1 million in H1 2024
  • ZEGNA brand revenues increased 4.6% YoY to €566.1 million
  • Direct-to-Consumer channel grew 14.8% YoY
  • Strong performance in U.S. and EMEA markets
  • TOM FORD FASHION integration progressing with 4.7% organic growth
Negative
  • Thom Browne revenues declined 19.4% YoY to €166.7 million
  • Greater China Region faced challenges with negative organic growth
  • Wholesale branded revenues decreased 7.5% YoY
  • Challenging outlook expected for remainder of 2024
  • Creative Director of TOM FORD FASHION stepping down

Insights

Ermenegildo Zegna Group's H1 2024 financial results demonstrate a mixed performance across its brand portfolio. The overall revenue growth of 6.3% year-over-year to €960.1 million is positive, but organic growth was negative at -2.7%.

The ZEGNA brand showed resilience with 5.9% organic growth, driven by strong performance in the U.S. and EMEA markets. However, challenges persist in the Greater China Region, which saw single-digit negative growth.

Thom Browne's performance was concerning, with revenues declining 19.7% year-over-year and 27% organically. This significant drop was attributed to the streamlining of wholesale business, which wasn't fully offset by improved Direct-to-Consumer (DTC) performance.

TOM FORD FASHION showed promise with 4.7% organic growth, albeit over a short comparison period. The recent departure of Creative Director Peter Hawkings adds uncertainty to the brand's future direction.

The Group's focus on DTC channels is paying off, with 14.8% year-over-year growth. This strategy appears to be effective in driving revenue and potentially improving margins.

While the company remains confident in its long-term strategy, management acknowledges the challenging environment in 2024 and is implementing cost control measures. This proactive approach could help maintain profitability in the face of economic headwinds.

The luxury fashion market is showing signs of regional divergence based on Ermenegildo Zegna Group's results. The strong performance in the Americas (+29.4% YoY) and EMEA (+4.3% YoY) contrasts sharply with the decline in the Greater China Region (-13.2% YoY).

This geographic disparity highlights the importance of a diversified market presence for luxury brands. The Group's ability to capitalize on strong U.S. and European demand has helped offset weaknesses in China, a traditionally important market for luxury goods.

The shift towards Direct-to-Consumer (DTC) channels is a notable trend, with DTC revenues growing 14.8% YoY and now accounting for 76% of branded product sales. This aligns with broader industry trends of luxury brands seeking greater control over their distribution and customer relationships.

The challenging performance of Thom Browne, particularly in wholesale, underscores the ongoing evolution of distribution strategies in luxury fashion. Brands are increasingly focused on optimizing their channel mix to balance growth, profitability and brand positioning.

The addition of TOM FORD FASHION to the portfolio adds a new dimension to the Group's market positioning. However, the creative leadership change introduces uncertainty that investors will be watching closely.

Overall, these results reflect a luxury market that remains resilient but increasingly complex, with brands needing to navigate regional economic variations, evolving distribution models and the challenge of maintaining brand equity while driving growth.

  • H1 2024 grew 6% Year-on-Year (YoY), +8% at constant currency and -2.7% organic2.



  • In Q2 2024 revenues rose to €497 million, +5% YoY, +6% constant currency with flat organic growth:



    • ZEGNA and TOM FORD FASHION recorded solid growth of +5% YoY and +30% YoY respectively (both achieving +5% organic).



    • Direct-to-Consumer (DTC) drove the Group’s revenues growth with +10% YoY and +2% organic.



    • United States and EMEA outperformed other geographies.

MILAN--(BUSINESS WIRE)-- Ermenegildo Zegna N.V. (NYSE:ZGN) (the “Company” and, together with its consolidated subsidiaries, the “Ermenegildo Zegna Group” or the “Group”) today announced unaudited revenues of €960.1 million for the first half of 2024, +6.3% YoY from €903.1 million in the first half of 2023 (-2.7% organic). In the second quarter revenues reached €497.0 million, +4.7% YoY and -0.4% organic.

Ermenegildo “Gildo” Zegna, Chairman and CEO of the Ermenegildo Zegna Group, said: “In the first half of the year our Group reached €960 million of revenues with 6% growth and an improved organic performance in the second quarter.

ZEGNA continued to deliver robust performance with a +5.9% organic growth, driven by the DTC channel, up double-digit in EMEA and in the U.S. These results confirm that we are successfully delivering on ZEGNA’s evolution.

At Thom Browne we are focusing on the strategic projects crucial to unlocking the brand’s long-term potential. The couture show in Paris confirmed Thom’s extraordinary talent.

At TOM FORD FASHION, we have just announced that Peter Hawkings is stepping down as Creative Director of the brand and his successor will be announced in the near future. As we look to the next phase of the brand’s development, I am today even more optimistic about the bright future of this business.

Looking ahead, I remain fully confident in the strategy we have put in place and the trajectory we are on. Our Group is a custodian of three authentic brands, each with unexplored long-term growth potential. We all recognize that 2024 will remain challenging, which is why we have been working on cost control initiatives across the Group. Nevertheless, we will continue to act with perseverance and firmness, combined with foresight and vision, to pursue our long-term ambitions.”

___________________________________________ 

1 Throughout this press release, revenues for the first half of 2024 are preliminary and unaudited.

2 Revenues on 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, (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 for the Six and Three Months Ended June 30, 2024

REVENUES BY SEGMENT (Unaudited)

 

For the six months ended June 30,

 

H1 2024 vs H1 2023

 

For the three months ended June 30,

 

Q2 2024 vs Q2 2023

(€ thousands, except percentages)

2024

 

2023(1)

 

Revenues Growth

 

Organic Growth

 

2024

 

2023(1)

 

Revenues Growth

 

Organic Growth

Zegna

660,538

 

644,310

 

2.5%

 

3.5%

 

335,638

 

324,986

 

3.3%

 

2.7%

Thom Browne

166,935

 

207,959

 

(19.7%)

 

(27.0%)

 

87,869

 

94,708

 

(7.2%)

 

(17.8%)

Tom Ford Fashion

148,493

 

64,027

 

131.9%

 

4.7%

 

83,473

 

64,027

 

30.4%

 

4.7%

Eliminations

(15,844)

 

(13,237)

 

n.m.(2)

 

n.m.

 

(10,015)

 

(8,974)

 

n.m.

 

n.m.

Total revenues

960,122

 

903,059

 

6.3%

 

(2.7%)

 

496,965

 

474,747

 

4.7%

 

(0.4%)

___________________________________________

(1)

Revenues from Pelletteria Tizeta, a manufacturing company of the Group, which were allocated to the Zegna segment in H1 2023, are now presented within the Tom Ford Fashion segment in H1 2024. As a result, the related revenues in H1 2023 have been reclassified from the Zegna segment to the Tom Ford Fashion segment to conform to the current period presentation.

(2)

Throughout this section “n.m.” means not meaningful.

REVENUES BY BRAND AND PRODUCT LINE (Unaudited)

 

For the six months ended June 30,

H1 2024 vs H1 2023

 

For the three months ended June 30,

Q2 2024 vs Q2 2023

(€ thousands, except percentages)

2024

 

2023

 

Revenues Growth

 

Organic Growth

 

2024

 

2023

 

Revenues Growth

 

Organic Growth

ZEGNA brand

566,067

 

541,319

 

4.6%

 

5.9%

 

283,197

 

269,430

 

5.1%

 

5.0%

Thom Browne

166,721

 

206,951

 

(19.4%)

 

(26.7%)

 

87,514

 

94,399

 

(7.3%)

 

(17.9%)

TOM FORD FASHION

148,493

 

64,015

 

132.0%

 

4.7%

 

83,473

 

64,015

 

30.4%

 

4.7%

Textile

71,836

 

73,072

 

(1.7%)

 

(0.6%)

 

38,593

 

39,254

 

(1.7%)

 

(0.5%)

Other (1)

7,005

 

17,702

 

(60.4%)

 

(32.9%)

 

4,188

 

7,649

 

(45.2%)

 

(23.0%)

Total revenues

960,122

 

903,059

 

6.3%

 

(2.7%)

 

496,965

 

474,747

 

4.7%

 

(0.4%)

____________________________________________

(1)

Other mainly includes revenues from agreements with third party brands.

Zegna segment

In H1 2024, revenues for the Zegna segment, which includes the ZEGNA brand, textile and other, amounted to €660.5 million compared to €644.3 million in H1 2023, +2.5% YoY (+3.5% organic). Revenues in Q2 were €335.6 million, +3.3% YoY (+2.7% organic) driven by the solid performance from the ZEGNA brand.

In H1 2024, revenues for the ZEGNA brand were €566.1 million compared to €541.3 million in H1 2023, +4.6% YoY (+5.9% organic3). The performance was driven by ongoing robust growth in the U.S. and EMEA. Organic performance in the Greater China Region (GCR) remained in line with Q1 2024 (single-digit negative) in an increasingly challenging environment for the sector.

In H1 2024, revenues for Textile were €71.8 million compared to €73.1 million in H1 2023 (-1.7% YoY and -0.6% organic), with Q2 coming in substantially in line with Q1. Other revenues, which mainly includes revenues for third-party brands, were €7.0 million compared to €17.7 million in H1 2023 (-60.4% YoY and -32.9% organic), due to the termination of the Tom Ford International distribution license for Tom Ford products4, following the acquisition of Tom Ford International LLC on April 28, 2023.

Thom Browne segment

In H1 2024, revenues for the Thom Browne segment amounted to €166.9 million, compared to €208.0 million in H1 2023 (-19.7% YoY and -27.0% organic5). The performance of the second quarter (-7.2% YoY and -17.8% organic), which improved sequentially, reflected the ongoing streamlining of the wholesale business, which was only partially counterbalanced by improved DTC performance and by a less demanding base of comparison. The brand continued to record strong results in Japan, which were offset by a decline in the GCR, EMEA and the Americas, also impacted by the decision to streamline the wholesale business.

Thom Browne brand results are substantially aligned to the segment, with H1 2024 revenues at €166.7 million compared to €207.0 million in H1 2023 (-19.4% YoY and -26.7% organic).6

_____________________________________
3 Excludes foreign exchange impact and revenues in Korea, both DTC and wholesale for each period, since the Group purchased the Korean business 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 Korea, both DTC and wholesale for each period, since the Group purchased the Korean business on July 1, 2023 in the country.
6 The difference between Thom Browne segment and Thom Browne brand refers to Thom Browne stores in MEA managed by Zegna Gulf Trading LLC on behalf of Thom Browne and allocated to Other in the revenues by brand and product line.

Tom Ford Fashion segment

Since the consolidation of Tom Ford International LLC and its subsidiaries occurred on April 29, 2023, this section comments only the organic performance, which compares the revenues of the two months in which Tom Ford International LLC was consolidated in 2023 and 2024.

In H1 2024, revenues for the Tom Ford Fashion segment amounted to €148.5 million, +4.7% organic (compared to the last two months of Q2 2023), driven by a good performance in DTC and the U.S. The company is continuing to strengthen the team and set the foundation for its next evolution.

Eliminations include revenues from products that the Textile and Other lines sell to the Group’s brands.

REVENUES BY DISTRIBUTION CHANNEL (Unaudited)

 

For the six months ended June 30,

H1 2024 vs H1 2023

 

For the three months ended June 30,

Q2 2024 vs Q2 2023

(€ thousands, except percentages)

2024

 

2023

 

Revenues Growth

 

Organic Growth

 

2024

 

2023

 

Revenues Growth

 

Organic Growth

Direct to Consumer (DTC)

 

 

ZEGNA brand

486,561

 

465,710

 

4.5%

 

5.1%

 

246,946

 

236,114

 

4.6%

 

4.0%

Thom Browne

89,976

 

82,924

 

8.5%

 

(12.8%)

 

45,257

 

40,075

 

12.9%

 

(11.6%)

TOM FORD FASHION

93,062

 

34,751

 

167.8%

 

1.3%

 

49,361

 

34,751

 

42.0%

 

1.3%

Total Direct to Consumer (DTC)

669,599

 

583,385

 

14.8%

 

2.4%

 

341,564

 

310,940

 

9.8%

 

1.7%

As a percentage of branded products (1)

76 %

 

72 %

 

 

 

 

 

75 %

 

73 %

 

 

 

 

Wholesale branded

 

 

ZEGNA brand

79,506

 

75,609

 

5.2%

 

10.4%

 

36,251

 

33,316

 

8.8%

 

11.8%

Thom Browne

76,745

 

124,027

 

(38.1%)

 

(36.0%)

 

42,257

 

54,324

 

(22.2%)

 

(22.4%)

TOM FORD FASHION

55,431

 

29,264

 

89.4%

 

8.7%

 

34,112

 

29,264

 

16.6%

 

8.7%

Total Wholesale branded

211,682

 

228,900

 

(7.5%)

 

(14.9%)

 

112,620

 

116,904

 

(3.7%)

 

(5.0%)

As a percentage of branded products

24 %

 

28 %

 

 

 

 

 

25 %

 

27 %

 

 

 

 

Textile

71,836

 

73,072

 

(1.7%)

 

(0.6%)

 

38,593

 

39,254

 

(1.7%)

 

(0.5%)

Other (2)

7,005

 

17,702

 

(60.4%)

 

(32.9%)

 

4,188

 

7,649

 

(45.2%)

 

(23.0%)

Total revenues

960,122

 

903,059

 

6.3%

 

(2.7%)

 

496,965

 

474,747

 

4.7%

 

(0.4%)

__________________________________________

(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 H1 2024, DTC revenues were €669.6 million compared to €583.4 million in H1 2023 (+14.8% YoY and +2.4% organic). ZEGNA DTC revenues drove the Group’s performance, increasing by 4.5% YoY and +5.1% organic growth, thanks to the solid performance in the Americas and EMEA. In Q2 ZEGNA DTC organic growth reached a good +4.0% notwithstanding the challenging base of comparison. At the end of June, ZEGNA counted 279 Directly Operated Stores (DOS), with 2 net openings in Q2, including Taormina, Italy.

Thom Browne DTC revenues were +8.5% YoY in H1 2024. Excluding the effect of the acquisition of the Thom Browne business in South Korea (previously accounted in the wholesale channel), DTC revenues declined by 12.8% organic, reflecting the challenging environment, especially in the GCR. Revenues improved slightly in Q2, mainly driven by a stronger Japan, but still with negative growth. At the end of June, Thom Browne counted 102 DOS, including 13 new small concession stores at Nordstrom and one store in Beijing WF Central.

TOM FORD FASHION DTC revenues reached €93.1 million, with 56 DOS at the end of June, including two net openings in the second quarter.

Wholesale Branded Revenues Analysis

In H1 2024, wholesale branded revenues were €211.7 million compared to €228.9 million in H1 2023 (-7.5% YoY and -14.9% organic).

ZEGNA wholesale revenues were €79.5 million compared to €75.6 million in H1 2023 (+5.2% YoY and +10.4% organic), mainly driven by different timing in deliveries.

Thom Browne wholesale revenues declined to €76.7 million compared to €124.0 million in H1 2023 (-38.1% YoY and -36.0% organic), still reflecting the decision to streamline the brand’s wholesale business. In Q2 2024 Thom Browne wholesale performance slightly improved thanks to a less demanding base of comparison.

TOM FORD FASHION wholesale revenues were €55.4 million.

REVENUES BY GEOGRAPHIC AREA (Unaudited)

 

For the six months ended June 30,

 

H1 2024 vs H1 2023

 

For the three months ended June 30,

 

Q2 2024 vs Q2 2023

(€ thousands, except percentages)

2024

 

2023

 

Revenues Growth

 

Organic Growth

 

2024

 

2023

 

Revenues Growth

 

Organic Growth

EMEA (1)

336,591

 

322,680

 

4.3%

 

(1.5%)

 

180,029

 

172,572

 

4.3%

 

2.8%

Americas (2)

246,046

 

190,112

 

29.4%

 

6.7%

 

131,869

 

117,705

 

12.0%

 

4.5%

Greater China Region

266,324

 

306,835

 

(13.2%)

 

(11.7%)

 

126,925

 

142,309

 

(10.8%)

 

(10.0%)

Rest of APAC (3)

109,990

 

82,190

 

33.8%

 

5.4%

 

57,556

 

41,463

 

38.8%

 

5.9%

Other (4)

1,171

 

1,242

 

(5.7%)

 

(17.5%)

 

586

 

698

 

(16.0%)

 

(21.2%)

Total revenues

960,122

 

903,059

 

6.3%

 

(2.7%)

 

496,965

 

474,747

 

4.7%

 

(0.4%)

__________________________________________

(1)

EMEA includes Europe, the Middle East and Africa.

(2)

Americas includes the United States of America, Canada, Mexico, Brazil and other Central and South American countries.

(3)

Rest of APAC includes Japan, South Korea, Singapore, Thailand, Malaysia, Vietnam, Indonesia, Philippines, Australia, New Zealand, India and other Southeast Asian countries.

(4)

Other revenues mainly include royalties.

In H1 2024, EMEA recorded revenues of €336.6 million (+4.3% YoY and -1.5% organic), accounting for 35% of Group’s revenues. Performance for the region was influenced by strong ZEGNA results, offset by the negative results of Thom Browne, especially in the wholesale channel.

Revenues in the Americas amounted to €246.0 million (+29.4% YoY and +6.7% organic), accounting for 26% of the Group revenues, with double-digit growth from ZEGNA and a solid performance from TOM FORD FASHION.

The GCR recorded revenues of €266.3 million (-13.2% YoY and -11.7% organic), accounting for 28% of the Group’s revenues, impacted by a still-subdued consumer confidence, with ZEGNA continuing to outperform in the region. Revenues in the rest of APAC grew to €110.0 million (+33.8% YoY and +5.4% organic), driven by the strong double-digit organic performance in the Japanese market offset by the performance of the other markets in the region.

Group Monobrand(1) Store Network at June 30, 2024

 

At June 30, 2024

 

At December 31, 2023

 

At June 30, 2023

Stores

ZEGNA

 

Thom Browne

 

TOM FORD FASHION

 

Group

 

ZEGNA

 

Thom Browne

 

TOM FORD FASHION

 

Group

 

ZEGNA

 

Thom Browne

 

TOM FORD FASHION

 

Group

EMEA (2)

75

 

9

 

7

 

91

 

71

 

9

 

4

 

84

 

69

 

10

 

4

 

83

Americas

64

 

20

 

12

 

96

 

59

 

7

 

12

 

78

 

55

 

7

 

11

 

73

Greater China Region

82

 

35

 

11

 

128

 

79

 

33

 

10

 

122

 

79

 

32

 

11

 

122

Rest of APAC

58

 

38

 

26

 

122

 

44

 

37

 

25

 

106

 

43

 

17

 

25

 

85

Total Direct to Consumer (DTC)

279

 

102

 

56

 

437

 

253

 

86

 

51

 

390

 

246

 

66

 

51

 

363

EMEA (2)

46

 

7

 

16

 

69

 

55

 

7

 

14

 

76

 

59

 

7

 

12

 

78

Americas

67

 

3

 

50

 

120

 

63

 

3

 

50

 

116

 

63

 

3

 

51

 

117

Greater China Region

13

 

10

 

 

23

 

13

 

10

 

 

23

 

13

 

11

 

 

24

Rest of APAC

4

 

4

 

5

 

13

 

20

 

5

 

6

 

31

 

22

 

22

 

7

 

51

Total Wholesale

130

 

24

 

71

 

225

 

151

 

25

 

70

 

246

 

157

 

43

 

70

 

270

Total

409

 

126

 

127

 

662

 

404

 

111

 

121

 

636

 

403

 

109

 

121

 

633

_________________________________________

(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 Russia at June 30, 2024, December 31, 2023 or at June 30, 2023. Although some stores may still be operating at June 30, 2024, they have not been supplied by the Group since February 2022 and have therefore been excluded from the Group’s store count.

SIGNIFICANT EVENTS OCCURRED IN THE SECOND QUARTER OF 2024

VILLA ZEGNA - Oasi Linen in Shanghai

On May 23, 2024, ZEGNA brought the new “VILLA ZEGNA” experience to Shanghai. “VILLA ZEGNA” reflects ZEGNA’s new approach to interacting with its customers, offering them immersive experiences that foster emotional connections to the brand. The one-week event was hosted in a building of three floors, seamlessly blending the vision of the founder, the brand’s history and the fabrics that made ZEGNA the leading menswear brand in the world – which, together, gave guests the opportunity to immerse themselves in the realm of top luxury.

ZEGNA Summer 2025 Fashion Show

On June 17, 2024, ZEGNA presented its Summer 2025 Fashion Show in an industrial Milanese space that was transformed into a field of linen to evoke the golden fields of Normandy ready for harvest. Envisioned by Artistic Director, Alessandro Sartori, the menswear collection celebrated the unique characteristics of the brand’s fabric of choice for summer: Oasi Lino. The collection represents a development central to the brand’s Our Road to Traceability, as the Oasi Lino fibers are fully traceable.

Thom Browne Couture Show

On June 24, 2024, with references to the upcoming Olympic Games, Thom Browne held its second women’s and men’s 2024 couture collection in Paris. The show was an immersive experience that centered on muslin and with references to the upcoming Olympic Games, all of which revealed an incredible exhibit of traditional couture techniques.

SIGNIFICANT EVENTS OCCURRED AFTER JUNE 30, 2024

TOM FORD FASHION - Departure of Creative Director

On July 22, 2024, it was announced that Peter Hawkings is stepping down as Creative Director of the brand. Peter Hawkings has been at TOM FORD since its inception and at the helm of creative since April 2023.

The Spring-Summer 2025 collection will be presented in the Milan showroom in September 2024. A successor will be announced in the near future.

UPCOMING EVENTS

Next releases

  • September 18, 2024: H1 2024 Financial Results
  • October 22, 2024: Q3 2024 Unaudited Revenues

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 Ukraine and sanctions imposed onto Russia; the occurrence of acts of terrorism or similar events, conflicts, civil unrest or situations of political instability; developments in Greater China and other growth and emerging markets; our ability to implement our strategy; recent and potential future acquisitions; disruption to our manufacturing and logistics facilities; risks related to the sale of our products through our direct-to-consumer channel, as well as through points of sale operated by third parties; our dependence on our local partners to sell our products in certain markets; fluctuations in the price or quality of, or disruptions in the availability of, raw materials; our ability to negotiate, maintain or renew our license or co-branding agreements with high end third party brands; tourist traffic and demand; our dependence on certain key senior personnel as well as skilled personnel; our ability to protect our intellectual property rights; disruption in our information technology, including as a result of cybercrime; the theft or unauthorized use of personal information of our customers, employees or other parties; fluctuations in currency exchange rates or interest rates; the level of competition in the industry in which we operate; global economic conditions and macro events, including inflation; failures to comply with applicable laws and regulations; climate change and other environmental impacts and our ability to meet our customers’ and other stakeholders’ expectations on environment, social and governance matters; the enactment of tax reforms or other changes in tax laws and regulations; and other risks and uncertainties, including those described in our filings with the SEC.

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 or 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 or organic)

In addition to presenting our revenues on a current currency basis, we also present certain revenue information on an organic growth basis (organic growth or organic). 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 six months ended June 30, 2024 compared to the six months ended June 30, 2023 (H1 2024 vs H1 2023) and for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 (Q2 2024 vs Q2 2023).

Segment

 

H1 2024 vs H1 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

2.5%

 

(1.9%)

 

4.4%

 

0.7%

 

0.2%

 

3.5%

Thom Browne

(19.7%)

 

(1.2%)

 

(18.5%)

 

8.5%

 

—%

 

(27.0%)

Tom Ford Fashion

131.9%

 

(1.4%)

 

133.3%

 

128.6%

 

—%

 

4.7%

Total

6.3%

 

(1.8%)

 

8.1%

 

11.6%

 

(0.8%)

 

(2.7%)

 

Q2 2024 vs Q2 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

3.3%

 

(1.1%)

 

4.4%

 

1.1%

 

0.6%

 

2.7%

Thom Browne

(7.2%)

 

(1.0%)

 

(6.2%)

 

11.6%

 

—%

 

(17.8%)

Tom Ford Fashion

30.4%

 

(1.0%)

 

31.4%

 

26.7%

 

—%

 

4.7%

Total

4.7%

 

(1.1%)

 

5.8%

 

6.7%

 

(0.5%)

 

(0.4%)

Brand and product line

 

H1 2024 vs H1 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

4.6%

 

(2.1%)

 

6.7%

 

0.8%

 

—%

 

5.9%

Thom Browne

(19.4%)

 

(1.2%)

 

(18.2%)

 

8.5%

 

—%

 

(26.7%)

TOM FORD FASHION

132.0%

 

(1.3%)

 

133.3%

 

128.6%

 

—%

 

4.7%

Textile

(1.7%)

 

(1.0%)

 

(0.7%)

 

(0.1%)

 

—%

 

(0.6%)

Other

(60.4%)

 

(0.2%)

 

(60.2%)

 

(0.3%)

 

(27.0%)

 

(32.9%)

Total

6.3%

 

(1.8%)

 

8.1%

 

11.6%

 

(0.8%)

 

(2.7%)

 

Q2 2024 vs Q2 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

5.1%

 

(1.2%)

 

6.3%

 

1.3%

 

—%

 

5.0%

Thom Browne

(7.3%)

 

(1.0%)

 

(6.3%)

 

11.6%

 

—%

 

(17.9%)

TOM FORD FASHION

30.4%

 

(1.0%)

 

31.4%

 

26.7%

 

—%

 

4.7%

Textile

(1.7%)

 

(1.2%)

 

(0.5%)

 

—%

 

—%

 

(0.5%)

Other

(45.2%)

 

—%

 

(45.2%)

 

—%

 

(22.2%)

 

(23.0%)

Total

4.7%

 

(1.1%)

 

5.8%

 

6.7%

 

(0.5%)

 

(0.4%)

Distribution channel

 

H1 2024 vs H1 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

4.5%

 

(2.3%)

 

6.8%

 

1.7%

 

—%

 

5.1%

Thom Browne

8.5%

 

(4.2%)

 

12.7%

 

25.5%

 

—%

 

(12.8%)

TOM FORD FASHION

167.8%

 

(2.9%)

 

170.7%

 

169.4%

 

—%

 

1.3%

Total Direct to Consumer (DTC)

14.8%

 

(2.7%)

 

17.5%

 

15.1%

 

—%

 

2.4%

Wholesale branded

 

 

 

 

 

 

 

 

 

 

 

ZEGNA brand

5.2%

 

(0.7%)

 

5.9%

 

(4.5%)

 

—%

 

10.4%

Thom Browne

(38.1%)

 

—%

 

(38.1%)

 

(2.1%)

 

—%

 

(36.0%)

TOM FORD FASHION

89.4%

 

(0.1%)

 

89.5%

 

80.8%

 

—%

 

8.7%

Total Wholesale branded

(7.5%)

 

(0.2%)

 

(7.3%)

 

7.6%

 

—%

 

(14.9%)

Textile

(1.7%)

 

(1.0%)

 

(0.7%)

 

(0.1%)

 

—%

 

(0.6%)

Other

(60.4%)

 

(0.2%)

 

(60.2%)

 

(0.3%)

 

(27.0%)

 

(32.9%)

Total

6.3%

 

(1.8%)

 

8.1%

 

11.6%

 

(0.8%)

 

(2.7%)

 

Q2 2024 vs Q2 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

4.6%

 

(1.3%)

 

5.9%

 

1.9%

 

—%

 

4.0%

Thom Browne

12.9%

 

(2.9%)

 

15.8%

 

27.4%

 

—%

 

(11.6%)

TOM FORD FASHION

42.0%

 

(1.8%)

 

43.8%

 

42.5%

 

—%

 

1.3%

Total Direct to Consumer (DTC)

9.8%

 

(1.6%)

 

11.4%

 

9.7%

 

—%

 

1.7%

Wholesale branded

 

 

 

 

 

 

 

 

 

 

 

ZEGNA brand

8.8%

 

(0.3%)

 

9.1%

 

(2.7%)

 

—%

 

11.8%

Thom Browne

(22.2%)

 

—%

 

(22.2%)

 

0.2%

 

—%

 

(22.4%)

TOM FORD FASHION

16.6%

 

(0.4%)

 

17.0%

 

8.3%

 

—%

 

8.7%

Total Wholesale branded

(3.7%)

 

(0.2%)

 

(3.5%)

 

1.5%

 

—%

 

(5.0%)

Textile

(1.7%)

 

(1.2%)

 

(0.5%)

 

—%

 

—%

 

(0.5%)

Other

(45.2%)

 

—%

 

(45.2%)

 

—%

 

(22.2%)

 

(23.0%)

Total

4.7%

 

(1.1%)

 

5.8%

 

6.7%

 

(0.5%)

 

(0.4%)

Geographic area

 

H1 2024 vs H1 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)

4.3%

 

(0.1%)

 

4.4%

 

6.9%

 

(1.0%)

 

(1.5%)

Americas (2)

29.4%

 

0.1%

 

29.3%

 

24.4%

 

(1.8%)

 

6.7%

Greater China Region

(13.2%)

 

(2.9%)

 

(10.3%)

 

1.4%

 

—%

 

(11.7%)

Rest of APAC (3)

33.8%

 

(8.5%)

 

42.3%

 

37.8%

 

(0.9%)

 

5.4%

Other (4)

(5.7%)

 

—%

 

(5.7%)

 

11.8%

 

—%

 

(17.5%)

Total

6.3%

 

(1.8%)

 

8.1%

 

11.6%

 

(0.8%)

 

(2.7%)

_________________________________________

(1)

EMEA includes Europe, the Middle East and Africa.

(2)

Americas includes the United States of America, Canada, Mexico, Brazil and other Central and South American countries.

(3)

APAC includes Japan, South Korea, Thailand, Malaysia, Vietnam, Indonesia, Philippines, Australia, New Zealand, India and other Southeast Asian countries.

(4)

Other revenues mainly include royalties.

 

Q2 2024 vs Q2 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)

4.3%

 

0.3%

 

4.0%

 

2.0%

 

(0.8%)

 

2.8%

Americas (2)

12.0%

 

(0.2%)

 

12.2%

 

8.4%

 

(0.7%)

 

4.5%

Greater China Region

(10.8%)

 

(1.5%)

 

(9.3%)

 

0.8%

 

(0.1%)

 

(10.0%)

Rest of APAC (3)

38.8%

 

(9.7%)

 

48.5%

 

42.9%

 

(0.3%)

 

5.9%

Other (4)

(16.0%)

 

(0.1%)

 

(15.9%)

 

5.3%

 

—%

 

(21.2%)

Total

4.7%

 

(1.1%)

 

5.8%

 

6.7%

 

(0.5%)

 

(0.4%)

_________________________________________

(1)

EMEA includes Europe, the Middle East and Africa.

(2)

Americas includes the United States of America, Canada, Mexico, Brazil and other Central and South American countries.

(3)

APAC includes Japan, South Korea, Thailand, Malaysia, Vietnam, Indonesia, Philippines, Australia, New Zealand, India and other Southeast Asian countries.

(4)

Other revenues mainly include royalties.

 

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 was Ermenegildo Zegna Group's revenue for H1 2024?

Ermenegildo Zegna Group reported revenues of €960.1 million for H1 2024, representing a 6.3% increase year-over-year.

How did the ZEGNA brand perform in H1 2024?

The ZEGNA brand revenues grew 4.6% year-over-year to €566.1 million in H1 2024, with 5.9% organic growth.

What was the performance of Thom Browne in H1 2024?

Thom Browne revenues declined 19.4% year-over-year to €166.7 million in H1 2024, with a 26.7% organic decrease.

How did TOM FORD FASHION perform in H1 2024 for ZGN?

TOM FORD FASHION revenues reached €148.5 million in H1 2024, with 4.7% organic growth compared to the last two months of Q2 2023.

Which distribution channel drove growth for ZGN in H1 2024?

The Direct-to-Consumer (DTC) channel drove growth for Ermenegildo Zegna Group, increasing 14.8% year-over-year in H1 2024.

Ermenegildo Zegna N.V.

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